UK-based Ocado is considering cutting up to 1,000 jobs as part of a renewed drive to cut costs after a challenging year for its automated warehouse division, it reported. The times.
The potential cuts would be equivalent to approximately 5% of the company’s global workforce.
Discussions are said to be at an early stage and no final decision has been made.
A source cited in the report said the company could make an announcement as soon as this month.
The majority of the affected roles would be based at Ocado’s UK head office, including technology jobs and administrative roles across legal, finance and HR.
The group is due to publish its annual results later this month and last month reiterated its ambition to be cash flow positive in the next financial year.
The previous year, it revealed plans to cut 500 technology and finance positions after making 1,000 layoffs companywide in 2023-2024.
The company supplies robot-operated warehouse systems to supermarket chains and operates an online grocery joint venture with Marks & Spencer.
Its two largest customers in North America have recently announced the closure of several customer service centers.
Kroger said in November 2025 it would close three sites, while Canada’s Sobeys last month confirmed plans to close a facility in Calgary, citing slower-than-expected growth and the scale of the local online grocery market.
Mutual exclusivity agreements between the group and most retailers using its technology expired in December, prompting analysts to warn that recent developments could complicate future partnerships.
The company expects to make hundreds of millions of pounds in compensation related to warehouse closures, but has continued to make losses since its launch, with annual pre-tax losses narrowing to £374.5 million ($509.88 million) from £393.6 million in 2024.
“Ocado weighs up to 1,000 job cuts: report” was created and originally published by Retail Insight Network, a brand owned by GlobalData.
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