Ocado Announces 1,000 Job Cuts Amid Cost-Cutting Measures
Ocado Group is set to reduce its workforce by approximately 1,000 positions, representing around 5% of its total employees, over the next year as part of a strategic effort to lower costs.
Tim Steiner, CEO of the technology and online grocery company, stated that a "significant number" of roles will be eliminated due to a company restructuring.
With a global workforce of about 20,000, the majority of Ocado's employees are based in the UK. Approximately two-thirds of the job reductions will occur within the UK, primarily at the company's headquarters located in Hatfield, Hertfordshire.
Ocado provides technology solutions to supermarket distribution centers and operates an online grocery service in partnership with Marks & Spencer.
Last year, Ocado's shares experienced a sharp decline following announcements from its North American partners—Kroger in the United States and Sobeys in Canada—that they would be closing facilities managed by Ocado.
The company indicated that the measures it is implementing are expected to reduce costs by around £150 million. Most of the job cuts will affect technology and support teams.
Steiner commented on the restructuring, saying it will "reflect the lower structural cost base that we have signalled over recent years."
"Regrettably, this means a significant number of roles will no longer be required.
We will support those impacted through this process," he added.
