Ocado Group has confirmed it will cut around 1,000 jobs as part of a major restructuring effort aimed at reducing costs by £150 million. The cuts amount to roughly 5% of Ocado’s global workforce, with around two‑thirds of roles lost in the UK, primarily at its Hatfield headquarters.
The job losses will fall mainly across technology and support functions, as Ocado scales back research and development and merges operational divisions, including Ocado Solutions and Ocado Intelligent Automation. The company highlighted ongoing efficiencies in automation and robotics – part of a long‑running strategy to reduce technology costs following years of heavy investment.
A tough year despite retail growth
The confirmed job cuts come after a challenging period for Ocado’s automated warehouse and technology licensing business. The company has focused heavily on its technology‑first transformation, supplying robotic Customer Fulfilment Centres (CFCs) to partners including Morrisons and international retailers. A landmark deal with Kroger in 2018 to build 20 US CFCs once pushed Ocado’s value upwards.
However, Ocado’s warehouse division has struggled over the past year. In late 2025, US partner Kroger agreed to pay Ocado $350 million (£276 million) to close three CFCs and cancel another planned site, prompting a steep fall in Ocado’s share price. At the time, shares slumped to around 180p, a dramatic decline from their 2020 peak of 2,800p (£28).
Restructuring signals a new phase
Ocado says the restructuring reflects the end of a major phase of robotics and automation investment and the beginning of a period focused on cost discipline and more targeted development.
Chief executive Tim Steiner acknowledged the impact on staff, saying the company was “grateful to colleagues who are affected” and would support them through the transition.
Despite pressures on its technology arm, Ocado Retail – its joint venture with Marks & Spencer – continues to perform strongly. The group was also the fastest‑growing UK retailer for the second Christmas running in 2025, although its market share remains relatively small at around 1.7% of the grocery sector.
With conflicting forces shaping the business, the coming year will test whether Ocado’s leaner, more focused technology strategy can deliver sustainable growth alongside its thriving retail arm.
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