Ocado, the UK-based retail technology group, has announced plans to cut around 1,000 jobs as part of a £150 million cost-saving programme.
The reduction, affecting roughly 5% of its global workforce, will hit the company’s UK operations hardest, accounting for two-thirds of the job losses.
The job cuts are split between technology roles and support staff, with approximately half coming from Ocado’s tech teams. The company, headquartered in Hatfield, Hertfordshire, said it will also scale back research and development, streamline its commercial and support operations, and merge Ocado Solutions with Ocado Intelligent Automation into a single division.
Ocado cited “AI efficiencies” and “cost discipline” as key drivers behind the restructure, which aims to reduce spending in technology and support functions in 2026. The move follows last year’s cut of 500 technology roles, part of the company’s ongoing shift to incorporate more artificial intelligence into research and engineering operations.
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.”
The announcement comes amid a challenging period for Ocado, with its share price falling almost 10% on Thursday and down by more than a third over the past year. The company has faced a series of setbacks with its international partners, including the closure of warehouses in Canada and the US.
In January, Canadian partner Sobeys confirmed it would shut its Calgary facility, which used Ocado’s robotic and automation technology, citing the size and slower growth of Alberta’s grocery e-commerce market. This follows last year’s closure of three warehouses by Ocado’s US partner Kroger, which wiped nearly 20% off the UK company’s value.
Ocado is widely recognised in the UK for its online grocery service, operated jointly with Marks & Spencer, but much of its revenue comes from the Ocado Smart Platform – its proprietary software and robotics used by international grocery partners. The company currently operates 30 sites globally.