Ocado cuts up to 1,000 jobs in cost-cutting drive

British online supermarket specialist Ocado is set to make significant cuts to its workforce. Up to 1,000 jobs, approximately 5% of the total number of employees, are at risk as part of a major cost-cutting operation.

Strategic setbacks

Although negotiations are still in the early stages, it is already clear that most of the redundancies will be at the UK headquarters, particularly in departments such as technology, legal affairs, finance, and HR. The official announcement is expected later this month, according to The Sunday Times.

Ocado’s automation division suffered a number of major setbacks last year. In January, Canadian supermarket chain Sobeys closed a robotised distribution centre in Calgary, while US retail giant Kroger divested three automated warehouses. These setbacks have increased the pressure on Ocado to control costs and restore profitability.

In December 2025, Ocado announced that its exclusivity agreements with international partners, including Kroger, had been terminated in most markets. This will allow the company to offer its robot technology to a wider range of customers. Current partners include Aeon in Japan, Lotte Shopping in South Korea, and Coles in Australia.