Ocado eyes major redundancies with up to 1,000 jobs at risk in cost-cutting drive
Ocado is reportedly planning to cut up to 1,000 jobs as part of a cost-cutting drive after a difficult year for its warehouse business.The group, which runs robotic warehouses for supermarkets, is reportedly in talks about redundancies that would amount to 5 per cent of its global workforce.The majority of cuts are expected to be in the UK head office, including technology roles and some back office staff, according to the Sunday Times.However, no final decisions have been made and Ocado plans to consult with its staff over any cuts. It is understood that any cuts will affect the technology side of the business, and not retail.It comes after Ocado unveiled plans last year to scale back its research and development workforce, with plans to also reduce its technology costs from around £290million in 2024 to £60million by 2027. Ocado is reportedly planning up to 1,000 job cuts as it tries to slash costsA spokesman for Ocado said: ‘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.’The UK-listed retailer sells technology to retailers to pick and dispatch online food orders from robotic warehouses. It also runs its own grocery firm in partnership with Marks & Spencer.Investors are losing patience with Ocado as new openings with existing partners and further technology deals have failed to materialise.Its shares rose following the report but have lost 30 per cent over the last year after announcing its partners announced warehouse closures.Last month, Ocado confirmed its partner Canadian supermarket Sobeys planned to close its warehouse in Calgary, in another blow to its warehouse technology.Last year, one of its key partners, Kroger, said it would close three of its robotic warehouses across the US. It sparked the biggest drop in its share price.The pair had planned to build 20 robotic customer fulfilment centres across the US, but the roll-out has been slower than expected.AJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Ocado eyes major redundancies with up to 1,000 jobs at risk in cost-cutting drive
