Ocado Targets 1,000 Job Losses to Address Warehouse Cost Issues
British online grocery and technology company Ocado is reportedly preparing to cut up to 1,000 jobs. It represents around 5% of its global workforce. The move is part of a broader effort to reduce costs following a challenging period for its automated warehouse operations.
Potential Announcement Expected Soon
According to reports, an official statement regarding the restructuring could be released as early as this month. Most of the potential redundancies are expected to affect staff at the company’s UK headquarters. It is particularly within technology teams and administrative departments such as legal, finance, and human resources.
Company Response to Layoff Reports
When asked about the reported job cuts. An Ocado spokesperson stated that the company frequently reviews its business structure and operational efficiency. The spokesperson added that if decisions impacting employees are finalised. Affected workers will be informed directly and provided with appropriate support.
Recent Setbacks in Warehouse Operations
Ocado has faced several recent challenges within its automated logistics division. Canadian retailer Sobeys recently shut down a robotic warehouse facility in Calgary, while U.S. supermarket chain Kroger, one of Ocado’s largest partners, closed three automated distribution centres last year.
Expanding Opportunities for Technology Sales
Despite setbacks, Ocado has indicated new opportunities for growth after exclusivity agreements with partners ended in several markets. The company now aims to offer its warehouse automation technology to a broader range of global retailers.
Global Partnerships and Robotic Technology
Ocado’s advanced robotic systems allow retailers to efficiently process and dispatch online grocery orders from large fulfilment centres. International partners, including Aeon in Japan, Lotte Shopping in South Korea, and Coles in Australia, currently use the technology.
Financial Goals and Future Strategy
The company has reiterated that its main objective is to achieve positive cash flow during the 2025–26 financial year by implementing cost-saving measures. It also aims to deliver full-year positive cash flow in the following fiscal period as part of its long-term financial strategy.
Upcoming Financial Results Announcement
Ocado is scheduled to release its annual financial results on February 26, which investors and analysts will watch closely for further insight into the company’s restructuring plans and future outlook.
