Ocado to cut 1,000 jobs in £150m cost-saving overhaul as shares slide
Ocado to axe 1,000 jobs in UK-focused cuts
Online grocery and retail technology giant Ocado Group has announced plans to cut 1,000 jobs, around 5% of its global workforce, in a sweeping restructuring programme aimed at saving £150 million.
The move marks one of the company’s largest workforce reductions to date and comes amid widening losses, declining share prices, and setbacks in North America. Roughly two-thirds of the job cuts will affect the UK, particularly at Ocado’s headquarters in Hatfield, Hertfordshire.
The announcement has sent shockwaves through the retail and tech sectors, with shares falling sharply following the news.
Where Will the Ocado Job Cuts Happen?
Ocado employs about 20,000 people worldwide, with the majority based in the UK. The company confirmed that approximately two-thirds of the 1,000 roles being eliminated will impact UK staff.
Many of the affected positions are expected to be in technology and support teams, particularly within research and development (R&D), as Ocado scales back investment in these areas. About half of the roles cut will come from tech functions, while the remainder will be from support services.
The cuts are part of a broader restructuring that will merge Ocado Solutions and Ocado Intelligent Automation into a single division.
Why Is Ocado Cutting Jobs?
The company said the layoffs are part of a £150m cost-reduction drive, citing “AI efficiencies” and a need for tighter cost discipline.
Chief executive Tim Steiner described the changes as necessary to reflect a “lower structural cost base.” He acknowledged that a “significant number” of roles would no longer be required but pledged support for affected staff.
The announcement coincided with Ocado’s full-year financial results. While group revenues rose 12% to £1.36bn in the year to 30 November, pre-tax losses widened to £377.6m, compared with £339.8m the previous year.
North America Setbacks Add Pressure
Ocado’s restructuring follows a series of international setbacks. Its US partner, Kroger, recently confirmed it would close three Ocado-run warehouses. Meanwhile, Canadian supermarket chain Sobeys announced the closure of its Calgary robotic warehouse facility.
The closures dealt a blow to Ocado’s technology-driven business model, which centres on supplying proprietary robotics and software, known as the Ocado Smart Platform, to supermarket chains globally.
Analysts say the closures have intensified scrutiny over Ocado’s long-term growth strategy and profitability.
Shares Fall as Investors React
Following the job cuts announcement, Ocado shares dropped by more than 7% in early trading. The company’s stock has fallen significantly over the past year, reflecting investor concerns about profitability and expansion plans.
Market analysts have suggested that Ocado’s once-pioneering position in online grocery delivery has been overtaken by larger, more traditional supermarket rivals that have expanded aggressively into e-commerce.
Impact on Hatfield and the UK Workforce
Ocado’s headquarters in Hatfield, Hertfordshire, will bear the brunt of the job losses. Local MP Andrew Lewin described the decision as a “serious setback” for the community, noting the company’s longstanding presence in the area.
The job cuts follow a previous round of redundancies in 2025, when Ocado eliminated 500 technology roles, also citing increased reliance on artificial intelligence.
The latest announcement raises fresh concerns about employment stability within the UK’s retail technology sector.
What Happens Next for Ocado?
Despite the restructuring, Ocado maintains that its actions will position the business for long-term sustainability. The company operates 30 technology-powered sites worldwide and continues to run its UK retail arm in partnership with Mark & Spencer.
However, investors and employees alike will be closely watching whether the cost-cutting measures can reverse losses and restore confidence in the group’s growth strategy.
FAQ
How many jobs is Ocado cutting in 2026?
Ocado is cutting 1,000 jobs, representing about 5% of its global workforce.
Why is Ocado cutting 1,000 jobs?
The company is restructuring to save £150m in costs, citing AI efficiencies, reduced R&D spending, and the need to lower its structural cost base.
Where will the Ocado job cuts take place?
Approximately two-thirds of the cuts will affect the UK, particularly at Ocado’s headquarters in Hatfield, Hertfordshire.
Is Ocado losing money?
Yes. Although revenues rose 12% to £1.36bn, pre-tax losses widened to £377.6m in the latest financial year.
What happened with Ocado’s US and Canadian partners?
US supermarket chain Kroger is closing three Ocado-run warehouses, and Canadian retailer Sobeys is shutting a robotic facility in Calgary.
What is Ocado Smart Platform?
It is Ocado’s proprietary robotics and software system used by supermarkets worldwide to manage automated warehouses and online grocery fulfilment.
How have Ocado shares reacted?
Shares fell more than 7% after the announcement and have declined significantly over the past year.
Will Ocado cut more jobs in the future?
The company has not announced additional layoffs beyond the 1,000 roles but says it will continue focusing on cost discipline and efficiency improvements.