URGENT UPDATE: Ocado is considering significant cutbacks that could put up to 1,000 jobs at risk as the company shifts its focus towards cost reduction and a streamlined workforce. Reports from the Sunday Times reveal that this move could impact approximately 5% of its global workforce, sparking immediate concern among employees and stakeholders.
The online supermarket and robotic warehouse operator is currently in preliminary discussions about potential redundancies. While no final decisions have been made, Ocado has indicated that it will engage with staff on any forthcoming changes. An Ocado spokesperson 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.”
These developments come nearly a year after Ocado announced plans to downsize its research and development workforce in the UK, following investments exceeding £800 million in this sector over the last four years. Additionally, the company aims to slash its technology costs from around £290 million in the 2024 financial year to just £60 million by 2027, reflecting a strategic shift towards adopting new technologies.
Ocado’s share price has faced pressure recently. The company announced the closure of warehouses operated in partnership with US grocery chains, including Kroger, which has closed three Ocado-run facilities and abandoned plans for new sites. The Canadian supermarket chain Sobeys also reported the closure of its fulfillment center in Calgary just two months after Kroger’s announcements. Despite these challenges, Ocado continues to manage five operational sites for Kroger and supports Sobeys’ logistics with two warehouses dedicated to online business.
The Hertfordshire-based company specializes in providing automation technology that enables retailers to efficiently pick and dispatch online food orders from large robotic warehouses. It also operates a UK online grocery firm in partnership with Marks & Spencer.
As the situation develops, the impact of these potential job cuts looms large over Ocado’s workforce and its future operations. Stakeholders are urged to monitor the situation closely as the company navigates these challenging waters. Further updates are expected as Ocado consults with employees regarding any final decisions.
Stay tuned for more breaking news as this story unfolds.
