Co-op has confirmed plans to reduce headcount as part of a wider cost-cutting programme. If your role is placed at risk, understanding your employment rights under England and Wales law helps you evaluate your options, redundancy entitlements, and any proposed terms.
What has been announced
- On 23 September 2026, Co-op confirmed it is cutting jobs as part of a £200 million cost-saving drive amid widening financial losses.
- Company leadership cited increases to employers' National Insurance contributions as a contributing factor behind the restructuring.
- The total number of affected jobs and specific store or office locations have not been stated in initial reports.
About the company
The Co-op is one of the UK's largest consumer co-operatives, operating primarily within the retail sector alongside other service divisions.
The business is owned by millions of members and runs thousands of community-focused food stores across England, Scotland, and Wales.
What happens next
If your role is selected for potential redundancy, your employer must carry out a fair consultation process before any final decisions are made.
Where an employer plans to make 20 to 99 redundancies at one establishment within 90 days, collective consultation must last at least 30 days. For 100 or more redundancies, the minimum collective consultation period is 45 days.
Consultations must cover ways to avoid redundancies, reduce the number of people dismissed, and mitigate the consequences for affected staff.
Employees with at least two years of continuous service are entitled to statutory redundancy pay, calculated using age, weekly pay capped at the statutory limit, and length of service.
Employers must also consult on individual scoring, selection criteria, and potential alternative roles within the business.
Voluntary or compulsory redundancy
Co-op may invite applications for voluntary redundancy before moving to compulsory dismissals.
Voluntary redundancy packages sometimes include enhanced terms above statutory minimums, but acceptance remains subject to employer approval.
If voluntary applications do not meet cost reduction targets, the employer can move to compulsory redundancies using objective selection pools and criteria.
Your settlement agreement
Employers frequently offer settlement agreements to resolve employment terminations cleanly, especially during restructuring exercises.
A settlement agreement is a legally binding contract under which you waive the right to bring employment tribunal claims, usually in exchange for a financial severance payment.
For a settlement agreement to be legally valid under the law of England and Wales, you must receive independent legal advice from a qualified solicitor or legal adviser.
Employers usually contribute a set amount toward your legal fees to cover the cost of obtaining this mandatory independent advice.
Common questions
How many jobs are being cut at Co-op?
The exact number of redundancies remains unstated in the initial announcements, which describe the cuts as part of a £200 million cost-saving initiative.
What is the minimum consultation period for redundancies?
Under England and Wales employment law, collective consultation must last at least 30 days if 20 to 99 redundancies are proposed at one workplace, or at least 45 days if 100 or more roles are at risk.
Am I entitled to redundancy pay?
You qualify for statutory redundancy pay if you have been continuously employed by the business for at least two years. Your contractual terms may also entitle you to enhanced company redundancy pay.
Do I have to sign a settlement agreement?
No, signing a settlement agreement is voluntary. However, if you decline, you will generally be limited to statutory redundancy pay or your standard contractual notice and severance rights.
How Deen & Co helps
Deen & Co Solicitors advises employees navigating redundancy, restructuring, and settlement agreements across England and Wales. Our employment solicitors review proposed redundancy terms, ensure your consultation rights are respected, explain your settlement agreement in clear terms, and negotiate enhanced compensation packages where appropriate.
Read more about settlement agreement advice or work out your statutory redundancy pay.
If your role is in London, our settlement agreement solicitors London can review the package before you sign.
Sources
- Co-op confirms job cuts under £200m cost-saving plan as losses widen - independent.co.uk — independent.co.uk (23 September 2026)
- Co-op reveals jobs to be AXED as part of cost-cutting drive as boss blames Labour's National Insurance hikes on cuts - The Sun — The Sun (23 September 2026)
Last updated 25 September 2026. This page summarises publicly reported information and is general guidance, not legal advice on your own situation.
Free consultation · Employer usually pays
Been offered a settlement agreement by Co-op?
Speak to a solicitor today for a free consultation. Don't sign anything until you know what you're entitled to.
Settlement agreement advice · All redundancy programmes · Redundancy pay calculator