A major UK-based grocery is slashing around 1,000 jobs across its UK and worldwide workforce.
Ocado has announced plans to reduce costs by around £150million as part of its latest restructuring effort.
Following its latest financial results, Ocado confirmed around five per cent of its global workforce is being cut, with about two-thirds of the job losses impacting its UK operations.
It is understood that the majority of cuts will impact members of staff at the company’s headquarters in Hatfield, Hertfordshire.
Ocado is cutting jobs
| PA
The company, which runs its own UK online grocery business through a joint venture with Marks & Spencer, posted a 59 per cent boost in underlying earnings in its 2024/2025 financial results.
Furthermore, Ocado, which runs robotic warehouses for supermarket chains, confirmed it plans to scale back research and development (R&D).
The group is set to restructure its commercial, support, and R&D operations, which will see Ocado Solutions and Ocado Intelligent Automation merged into a single division.
Ocado chief executive Tim Steiner said: “Regrettably, this means a significant number of roles will no longer be required.
Ocado is understood to be preparing 1,000 job cuts | GETTY
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“We are grateful to colleagues who are affected by these changes, and whose talent and hard work have made a lasting contribution to Ocado.
“We will support those impacted through this process.”
Shares in the company have fallen 27 per cent over the past year after both its North American partners confirmed they would shutter robotic customer fulfilment centres following weak demand.
Notably, Ocado claims the expiry of exclusivity agreements in the majority of its overseas markets, including the U.S., frees it to pursue new partners.
Ocado is partnered with M&S
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Despite this, market analysts question whether Ocado can secure new deals following its issues with existing partners.
Mr Steiner added: “With exclusivity arrangements concluded in most markets, we have greater flexibility to pursue new partnerships and growth opportunities.
“We are well set to re-enter multiple markets with an evolved technology platform, designed to be more flexible, offering a wider range of solutions to help retailers to run more efficiently.”