Ocado to axe 1,000 jobs in cost-cutting drive

Ocado Group is planning 1,000 job cuts, about 5% of its global workforce, over the coming year as it seeks to cut costs.

Tim Steiner, the boss of the technology and online grocery group, said a “significant number” of roles would no longer be needed as part of a restructuring.

Ocado employs about 20,000 people worldwide, with the vast majority in the UK. About two-thirds of the job cuts will be in the UK, with most coming at its headquarters in Hatfield, Hertfordshire.

The company provides technology to supermarket distribution centres, as well as running an online grocery business with Marks & Spencer.

Last year, the company’s shares fell sharply after its North American partners – Kroger in the US and Sobeys in Canada – said they would close centres run by Ocado.

Ocado said the actions it was taking were expected to cut costs by about £150m. The job cuts are expected to come largely in tech and support teams.

Steiner said the changes being made would “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.