Ocado to cut around 1,000 jobs
Ocado Group has confirmed plans to cut around 1,000 jobs as it looks to reduce costs by around £150 million.
This will equate to around 5% of its global workforce.
Subscribe to TRBAround two thirds of the job cuts will be in the UK, with the majority coming from its headquarters in Hatfield, Hertfordshire. Affected staff are expected to be mostly in the technology and support teams.
In addition to its online grocery business, the company operates robotic warehouses for other supermarkets around the world. US grocery chain Kroger is shutting three Ocado warehouses while Sobeys in Canada has said it was closing a facility in Calgary.
Tim Steiner, chief executive of Ocado Group, said: “We have largely completed a very significant phase of investment in our robotics and automation capabilities.
“As that development cycle concludes and we accelerate deployment of our latest products, we expect aggregate Technology and Support costs to continue reducing.
“Our ongoing R&D investment will be concentrated on areas where we see the clearest path to value creation for Ocado and our partners.
“We are also reshaping parts of our organisation to focus our commercial strategy and simplify our operating model as we re-engage in multiple international markets, following the end of exclusivity arrangements.
“These changes will also 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 are grateful to colleagues who are affected by these changes, and whose talent and hard work have made a lasting contribution to Ocado. ”
Ocado has also announced that group revenue increased by 12% to £1.36 billion in the year to 30 November.
Meanwhile, adjusted EBITDA rose to £178 million from£117.million in the prior year.
