UPDATE: Ocado Group is considering significant workforce reductions, potentially putting up to 1,000 jobs at risk as it shifts focus towards cutting costs and enhancing operational efficiency. Reports from the Sunday Times indicate that this move could affect approximately 5% of Ocado’s global workforce.
In a developing situation, Ocado is in the early stages of discussions regarding redundancies, although no final decisions have been made. The company has committed to consulting with its staff before implementing any cuts. A spokesperson for Ocado stated, “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 urgent need for these cutbacks comes on the heels of Ocado’s substantial investments in research and development, totaling over £800 million in the last four years. Recently, the company has aimed to reduce its technology costs from £290 million in the 2024 financial year to just £60 million by 2027, reflecting a strategic pivot towards deploying new technologies.
Ocado’s share price has faced pressure, particularly following announcements of warehouse closures in the United States. Notably, Canadian supermarket chain Sobeys has announced the closure of its fulfillment center in Calgary, just two months after Kroger decided to shut down three warehouses operated by Ocado and abandon plans for new sites.
Despite these challenges, Ocado continues to operate five sites for Kroger and supports its logistics operations. Sobeys utilizes two warehouses to bolster its online service. The Hertfordshire-based company specializes in automation technology, enabling retailers to efficiently manage online food orders through cutting-edge robotic warehouses.
As Ocado navigates these turbulent waters, the potential job losses highlight the impact of changing market dynamics and the ongoing need for adaptation in the retail technology sector. Stakeholders and employees alike will be closely watching for further developments as the company evaluates its future strategy.
Stay tuned for more updates on this evolving situation as Ocado works to balance operational efficiencies with the welfare of its workforce.
