Ocado Layoffs: British Tech Firm To Cut Jobs in Major Restructuring Following Financial Setbacks; 1,000 To Be Impacted
Ocado Group is reportedly planning to cut 1,000 jobs, representing 5 per cent of its workforce, following a difficult year. The move targets UK head office and tech roles to reduce costs. This follows the closure of automated sites in North America. Ocado aims to be cash-flow positive by 2025-26.
Mumbai, February 9: British technology firm Ocado Group is reportedly preparing to reduce its global workforce by approximately 5 per cent, potentially affecting up to 1,000 employees. The decision comes after a challenging year for the automated warehouse specialist, which has faced slowing demand and the closure of several international facilities. According to reports, the company is seeking to streamline operations to improve its fiscal position ahead of its annual results announcement later this month.
The proposed layoffs follow a period of significant volatility for the FTSE 250 company, whose shares have depreciated by nearly one-third over the past twelve months. Most of the planned redundancies are expected to target the UK head office, specifically impacting technology departments alongside back-office functions such as legal, finance, and human resources. While talks are in the early stages, an official announcement is anticipated as early as February. Oracle Layoffs 2026: Tech Giant Issues Clarification Over Reports of 30,000 Job Cuts.
Ocado Layoffs Amid Operational Efficiency and Strategic Pivot
Ocado’s recent difficulties stem largely from cooled relations with major North American partners. Canadian retailer Sobeys recently opted to shut its robotic warehouse in Calgary, while the United States-based Kroger announced the closure of three customer fulfilment centres. These moves have raised investor concerns regarding the cost and long-term efficiency of Ocado’s proprietary robotic technology in the current economic climate.
To counter these setbacks, Ocado is pivoting its strategy after the expiration of several exclusivity agreements. The company now expects to market its warehouse automation technology to a broader range of global retailers. Current international clients include Aeon in Japan, Lotte Shopping in South Korea, and Coles in Australia, all of whom utilize Ocado’s systems to dispatch online grocery orders from large-scale automated facilities.
Financial Targets for the 2025-26 Period
The primary objective for the company is to become cash-flow positive during the 2025-26 financial year, which commenced in December. By reducing spending on research and development and cutting 1,000 roles, Ocado aims to achieve a stable cash position for the subsequent full year. This follows previous cost-cutting measures in 2023 and 2024, which saw the removal of 1,500 roles across various sectors of the business. Pinterest Layoffs: CEO Bill Ready Sacks Engineers As Company Doubles Down on an AI-Forward Approach
A spokesperson for Ocado Group stated that the company regularly reviews its operations to ensure long-term success but did not explicitly confirm the specific number of job losses. The firm has committed to supporting any affected staff throughout the transition period. Investors are now looking toward February 26, when the company is scheduled to release its annual results, for further clarity on its financial health and restructuring progress.
(The above story first appeared on LatestLY on Feb 09, 2026 04:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).