Co-op to cut 400 jobs as inflation soars in cost of living crisis

CO-OP is slashing hundreds of jobs because of tough trading conditions in the cost of living crisis.

The company said it will cut 400 positions amid “rising inflation“.

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Co-op Group is known for its supermarkets, as well as funerals and insurance.

The majority of roles will be cut from the company’s head office in Manchester.

Back office staff in areas like finance, marketing and IT are affected.

Retail staff at its more than 2,000 stores are not affected by the job cuts.

Co-op employs around 63,000 people including 4,000 support staff.

Inflation has soared to 9.4% putting pressure on household budgets. Many people are spending less as costs are rising.

Supermarkets are battling to keep prices down and stay competitive but face higher costs themselves.

Inflation could still go higher this year as experts predict it could hit 11%.

There are fears that soaring costs could hit the economy and plunge the country into recession.

In April, new Co-op Group chief executive Shirine Khoury-Haq revealed that the firm’s annual profits were slashed in half following supply chain disruption and higher costs.

It has now said it is bringing forward changes which were originally proposed for next year due to the fragile economic backdrop.

A spokesman for the Co-op said: “At our last set of annual results, we shared that as part of our strategy, making our Co-op more efficient and cost-effective was a priority.

“The tough trading environment, including rising inflation, means we have taken the difficult decision to bring forward some of the changes we had planned for 2023.

“These changes, designed to simplify our approach to business, will sadly mean a number of colleagues in central functions will leave the business.

“We make these changes with a heavy heart, but it is the right thing to do for the long-term health of our Co-op and for all of our members.”

Tesco said in February that it was cutting 1,400 shelf stacker roles, after 130 roles as seven of its Jacks stores.

Primark started the year with a staffing shake-up that cut 400 jobs.

The Bank of England has warned the UK economy is facing a bigger shock than the 1970s oil and energy crisis.

A UK family’s average disposable income is expected to fall by 1.25% this year.

It is the second-largest drop since records began in 1964, with the biggest in 2011 amid the global economic meltdown and ravaging austerity cuts.

The Bank said rocketing energy prices are fuelling the inflationary spiral. And it warned prices could rise by another 40 per cent when the cap goes up again in October.

Your rights in redundancy

Companies can choose to cut their workforce and employees should understand their rights.

You are entitled to statutory redundancy pay, but only if you have worked at your job for two years or more.

The statutory rate is based on your age, weekly pay and number of years in the job.

You will get:

• Half a week’s pay for each full year you worked aged under 22
• One week’s pay for each full year you worked aged 22 or older, but under 41
• One and half week’s pay for each full year you worked while aged 41 or older.

But it’s capped at 20 years and the max redundancy pay you can get is currently £16,320.

Some companies may offer to pay more than the statutory amount. This will usually be in your contract.

Plus, you are still entitled to any pay you are owed for untaken holiday days at the end of your notice period.

The government has a calculator on its website to help you work out how much you are owed.