It is about five per cent of its workforce
07:48, 26 Feb 2026Updated 07:56, 26 Feb 2026
A delivery driver for Ocado Group Plc
Ocado said it is cutting up to around 1,000 jobs across its UK and worldwide workforce as it looks to reduce costs by about £150 million as part of a restructure. The business, which runs robotic warehouses for supermarket chains as well as operating as an online super,marlet itself, is cutting 5% of its global workforce.
The group confirmed around 5% of its global workforce is being cut, with about two thirds of the job losses impacting its UK operations. Most of the UK cuts will affect staff at the firm’s headquarters in Hatfield, Hertfordshire.
The business, which runs robotic warehouses for supermarket chains, said it plans to scale back research and development (R&D), helping it trim around £150 million in technology and support costs in 2026. The group also said it will restructure its commercial, support and R&D operations, which will see Ocado Solutions and Ocado Intelligent Automation merged into a single division.
Ocado chief executive Tim Steiner said: “Regrettably, this means a significant number of roles will no longer be required. We are grateful to colleagues who are affected by these changes, and whose talent and hard work have made a lasting contribution to Ocado.
“We will support those impacted through this process.”
A spokesman for Ocado Group previously 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 business unveiled plans nearly a year ago to scale back its research and development workforce in the UK, having spent more than £800 million in this area over the previous four years. It was also aiming to substantially reduce its technology costs from around £290 million in the 2024 financial year to £60 million by 2027.
This coincides with a shift in focus towards the deployment of new technologies. Ocado’s share price has come under pressure in recent months after announcing the closure of warehouses run with its grocery partners in the US.
Canadian supermarket chain Sobeys said it was closing its fulfilment centre in the Canadian city of Calgary, two months after US grocery chain Kroger decided to shut three Ocado-run warehouses and scrapped plans for new sites. Ocado continues to operate five sites for Kroger and supports its logistics operations, and Sobeys uses two warehouses to support its online business.
The Hertfordshire-based group sells automation technology allowing retailers to pick and dispatch online food orders from giant robotic warehouses. It also runs a UK online grocery firm as a joint venture with Marks & Spencer.
