The Co-op is planning to cut spending on transformation projects by £47 million next year as the retailer continues to cut costs after 400 redundancies in its head office.
The independent retailer’s CEO Shirine Khoury-Haq revealed that there will be a reduction in transformation and change activity, which she said equated to around 40% of its capex plans.
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“Whilst our businesses are performing well, our trading environment remains challenging. So, we need to be agile and responsive to the environment we’re working in, and do all we can ensure that our Co-op is commercially sustainable for the future,” she said.
“Last week we announced some proposed changes to our ways of working to support the delivery of our strategic priorities. This includes stopping work that doesn’t support those priorities, or doesn’t support us trading, or staying safe and legal.”
The move will see 800 roles affected at the group’s Angel Square head office in Manchester, including 280 vacancies that haven’t been filled. The proposals are also set to create between 145 and 180 vacancies.
The news comes after the Co-op announced 400 redundancies in its Manchester head office as it continues to struggle with tough trading conditions.
Khoury-Haq added: “For those colleagues directly affected by the work, we have now completed all individual conversations and we are entering into a period of consultation which will run until early September, and sadly, when this ends, we expect around 400 colleagues will leave our Co-op,”
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