Underlying pre‑tax losses rose to £92 million in the first half of its financial year, up from £75 million a year earlier when a cyber‑attack forced the retailer into the red. On a statutory basis, losses deepened to £86 million from £50 million a year ago, a swing the group attributed to weak consumer confidence and £78 million of extra costs, including higher labour taxes.
Interim chief executive Kate Allum told the Press Association that the job reductions are a core element of the £200 million cost‑cutting programme launched earlier this year to offset rising expenses and protect long‑term financial stability. Allum declined to give a precise headcount, noting the Co‑op employs about 54,000 people and that the plan also involves creating new roles.
Despite the losses, the Co‑op reported a 2.4 percent rise in total sales for the half‑year, with food‑store sales up 2.6 percent. Allum said the growth reflects promotional activity such as an Aldi price‑match scheme and a rebound in online convenience shopping and funeral services, bringing food‑store volumes back to pre‑cyber‑attack levels.
The retailer is also pressing ahead with a proposed acquisition of Southern Co‑op, which would add roughly 330,000 members and about 300 food, funeral and Starbucks sites to its portfolio. The Competition and Markets Authority has opened an investigation and given the parties until 22 September to propose remedies, warning that a failure to address competition concerns could trigger a full Phase‑Two inquiry.
The financial results come after a turbulent year that saw the Co‑op grapple with the fallout from the April 2025 cyber‑attack – which cut first‑half revenues by £206 million and shaved £80 million off profits – and a series of senior‑management departures, including former chief executive Shirine Khoury‑Haq in March, ex‑chairwoman Debbie White in August and managing director Matt Hood earlier in the summer.
Allum, who took over as interim chief executive at the end of March, said the retailer is working to improve its culture after reports of a “toxic” environment earlier in the year. She added that while market conditions remain challenging, the Co‑op sees “reasons for confidence” across its portfolio and expects stronger performance in the second half of the year.