I don't know if I would recommend using them in the floor of the chicken coop, but we use them in the chicken
yard extensively for the ducks.
I would not think they would be harmful to the
chickens. Chickens are pretty good at not eating what they are suppose to and do not have the same problem as some rodents do with certain woods (don't keep pet rats on pine shavings!). Your problem is going to be the same problems you would have with
straw except magnified. It will be harder to shovel the mulch out than the straw would be for example. You can do it and it will be better than not having anything though
.