URGENT UPDATE: Ocado is considering significant cutbacks that could place up to 1,000 jobs at risk, as the retail technology firm intensifies its focus on cost reduction and workforce scaling. Reports from the Sunday Times indicate that this move could affect approximately 5% of Ocado’s global workforce, heightening concerns among employees and stakeholders.
Authorities reveal that the company is in the initial stages of discussions regarding redundancies, although no final decisions have been reached. A spokesperson for Ocado Group declined to comment directly on these reports but stated, “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.”
This potential job loss comes nearly a year after Ocado announced a strategy to scale back its research and development workforce in the UK. The company has invested over £800 million in this area over the past four years, but it now aims to drastically cut technology costs from around £290 million in the 2024 financial year to just £60 million by 2027.
The urgency of these developments is compounded by recent pressures on Ocado’s share price. The company faced setbacks following the closure of warehouses operated for its grocery partners in the United States. Notably, Canadian supermarket chain Sobeys has announced the closure of its fulfilment centre in Calgary, just two months after Kroger, a major US grocery chain, decided to shut three Ocado-run warehouses and abandoned plans for new sites.
Despite these challenges, Ocado continues to manage five operational sites for Kroger and supports logistics for their operations. Sobeys also relies on two of Ocado’s warehouses to bolster its online business.
Founded in Hertfordshire, Ocado is renowned for selling automation technology that enables retailers to efficiently pick and dispatch online food orders from large robotic warehouses. The company also operates a UK online grocery firm through a joint venture with Marks & Spencer.
As the situation develops, employees and investors alike are watching closely. The outcome of Ocado’s cost-cutting measures and potential job losses could have far-reaching implications for its operations and the job market. Stay tuned for updates as this story unfolds.
