UK: Co-op prepares wave of lay-offs
Employees of The Co-Op could face unwelcome news later today as the group prepares to announce layoffs
UK supermarket operator The Co-operative Group is preparing to inform its employees of a wave of redundancies, just-food understands.
The firm plans to detail the scale and scope of the lay-offs when it meets with employees later today (23 January). However, a spokesperson for The Co-op told just-food this morning that the group was unable to comment at this time.
The move comes as the supermarket-to-finance co-operative retailer looks to improve efficiencies in the face of tough trading conditions.
Over the past year, The Co-op has struggled to reverse declining sales and profits. In the first-half to 2 July, food sales fell 4.6%, resulting in a 21% decrease in underlying profits from its food stores. The company was, however, able to stem the tide somewhat during the third quarter to 31 December, with like-for-like food sales declining a more modest 0.2%.
In an attempt to improve profitability at its food business, The Co-op revealed that it is restructuring its food operations with the development of a "new operating model". At the end of last month, it was announced that seven high-ranking managers were exiting The Co-op's food unit as part of this restructuring initiative.
At that time, the Co-op told just-food that no "consumer facing" positions were involved in the review and it is believed that today's job losses will hit back-office staff, including HR and IT support functions.
UK co-op First Milk will not cut the price it pays for milk on 1 August, pledging to help develop "better structures" across the industry after weeks of anger from farmers....
Discount grocer Lidl has increased the amount it pays for milk in the face of protests from dairy farmers, who are shifting their focus from the UK's largest food retailers to pile pressure on the mid...
- Who will buy Danone's Stonyfield business?
- Analysis: Post discusses rationale for Weetabix
- US food next wave on display at Winter Fancy Food
- Interview: Sir Kensington's on sale to Unilever
- Why personalisation will take-off in US food
- Update - Post Holdings confirms Weetabix deal
- Unilever buys US condiments maker Sir Kensington's
- Ice cream helps Unilever sales, food flat
- Post: Weetabix "opens up M&A opportunities"
- Nestle organic growth slows but beats expectations