Ocado to cut up to 1,000 jobs - report

(Sharecast News) - Supermarket technology group Ocado is reportedly planning to cut up to 1,000 jobs, or 5% of its global headcount, as part of a renewed cost-cutting drive after a bruising year for its automated warehouse business. According to The Times, talks are still in their early stages and a final decision has yet to be made.

One source said an announcement could come as soon as this month and that they expected the majority of the cuts to be in the company's UK-based head office, including technology roles alongside some back office staff across legal, finance and human resources.

Ocado is due to report its annual results on 26 February. Last month, the company reaffirmed a goal of turning cashflow positive in the next financial year "underpinned by rigorous cost and capital discipline".

Last year it announced plans to axe 500 technology and finance roles as it reduced spending on research and development, having made 1,000 group-wide redundancies in 2023-24.

Shares in Ocado have plunged by nearly a third over the past year after two of its key North American customers announced plans to close a number of Ocado's automated facilities, known as customer fulfilment centres (CFCs), because of concerns over cost and efficiency.

Ocado told The Times: "We regularly review our operations to ensure we're set up for long-term success.

"If and when decisions are made that affect our people, we are committed to communicating with them directly and ensuring they are supported throughout."