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Ocado is to cut 1,000 jobs as the retail technology business attempts to slash costs by £150m in a major restructure.
The group confirmed about 5% of its global workforce is being cut, with about two-thirds of the job losses affecting its UK operations.
Most of the UK cuts will affect staff at the company’s headquarters in Hatfield, Hertfordshire.
The business, which runs robotic warehouses for supermarket chains, said it plans to scale back research and development, helping it cut about £150m in technology and support costs in 2026. It also cited “AI efficiencies” and “cost discipline” in reducing its spending.
The group also said it will restructure its commercial, support and R&D operations, which will result in Ocado Solutions and Ocado Intelligent Automation being merged into a single division.
The Ocado chief executive, Tim Steiner, said: “Regrettably, this means a significant number of roles will no longer be required.
“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.”
Ocado said last month that its Canadian partner was closing a warehouse that uses its robots and automation technology in another blow to the UK online delivery group’s business model.
It announced that Sobeys would be shutting the Calgary facility, saying it was “largely due to the Alberta grocery e-commerce market’s size and the rate of expansion being slower than originally anticipated”.
The decision came less than three months after Ocado’s US partner Kroger closed three warehouses, knocking almost a fifth off the UK company’s value.
