Ocado, the British supermarket technology group, is preparing for another round of job cuts as it looks to cut costs after a bruising year for its automated warehouse business. According to The Sunday Times, up to 1,000 jobs could be at risk. That would amount to around 5 per cent of Ocado’s global workforce. Talks are still at an early stage, and a final decision has not yet been made.
Financial Express has contacted Ocado and is awaiting a response.
Ocado layoffs: Announcement could come soon
One source told The Times that an announcement could come as soon as this month. The same source said most of the cuts are expected to hit Ocado’s UK head office, with technology roles likely to be affected, along with back-office teams in legal, finance and human resources.
Ocado is due to publish its annual results on February 26. Last month, the company repeated its goal of turning cash-flow positive in the next financial year, a plan it said would be “underpinned by rigorous cost and capital discipline”.
According to The Times report, the company has already been cutting back. Last year, Ocado said it would remove 500 technology and finance roles as it reduced spending on research and development. That followed 1,000 group-wide redundancies in 2023–24.
Founded in 2000 by three former Goldman Sachs executives, the FTSE 250 company built its business around selling advanced, robot-run warehouse technology to some of the world’s largest supermarkets. Alongside that, it also runs an online grocery joint venture with Marks & Spencer.
Ocado responds to report
When contacted by The Sunday Times, an Ocado Group spokesperson did not confirm the job cuts but said the company regularly reviews how it operates.
“We regularly review our operations to ensure we’re set up for long-term success,” the company said. “If and when decisions are made that affect our people, we are committed to communicating with them directly and ensuring they are supported throughout.”
Share price hit by customer exits
Ocado’s shares have fallen by nearly a third over the past year. The drop came after two major North American customers said they would shut several of Ocado’s automated facilities, known as customer fulfilment centres, due to concerns over cost and efficiency. One of its customers, Canadian supermarket operator Sobeys, decided to shut its robotic warehouse in Calgary.
In November, US supermarket group Kroger said it would close three fulfilment centres, a move that briefly pushed Ocado’s share price back toward its 180p IPO level from 2010.
In December, Ocado said it expects to sell its robotic warehouse technology to more customers now that exclusivity agreements have ended in most of its markets.
The technology helps retailers pick and dispatch online grocery orders from large, automated warehouses. Ocado’s customers include Aeon in Japan, Lotte Shopping in South Korea, and Coles in Australia.
In July, Ocado said its main priority was to turn cash-flow positive during the 2025–26 financial year, which began in December. The company plans to achieve this by cutting costs and aims to be cash positive for a full year in the following financial year.
Ocado is set to release its annual results on February 26.