The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
North West; Greater Manchester; Greater Manchester North
Location of affected unit(s)
Sector
Retail Retail Trade, Except Of Motor Vehicles And Motorcycles Retail Sale In Non-Specialised Stores 47.1 - Retail sale in non-specialised stores
600 jobs Number of planned job losses
Announcement Date
27 May 2005
Employment effect (start)
Foreseen end date
Description
The Co-op Group is to cut 600 jobs at its head office in Manchester - almost one in five posts - as it struggles to cope with mounting competition from Tesco and its own bungled expansion strategy. The Co-op, which runs 3,000 food and pharmacy stores as well as a bank, reported in May 2005 that operating profits were down to £244 million from £327 million in 2004.
Chief executive Martin Beaumont said the shake-up - which follows 2,500 redundancies from its insurance arm - was deeply regrettable but vital to ensure the business had a viable future. The food retailing side recorded a 40% slump in profits to £47.8 million as it suffered against expanding rivals, but it also had self-inflicted problems as it failed to easily assimilate new acquisitions. A further 800 shops have been added to the Co-op network over the past two years, including 64 convenience stores bought from Conseco in 2004.
Sources
27 May 2005: The Guardian
Citation
Eurofound (2005), Co-op, Internal restructuring in United Kingdom, factsheet number 61654, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/61654.
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