Ocado Group announced plans to cut approximately 1,000 jobs, representing around 5% of its global workforce, on Thursday, February 26, 2026, as part of a restructuring effort aimed at reducing costs by £150 million.
The company, which provides technology for automated warehouses and operates its own online grocery business in the UK with Marks & Spencer, stated that a “significant number” of roles would be eliminated, according to Ocado CEO Tim Steiner. Approximately two-thirds of the job cuts will affect UK operations, with the majority of those reductions occurring at the company’s headquarters in Hatfield, Hertfordshire.
The restructuring will involve scaling back research and development (R&D) initiatives, particularly in technology and support teams, according to the company. Ocado plans to merge its Ocado Solutions and Ocado Intelligent Automation divisions into a single unit. The move comes as the company seeks to streamline operations and improve efficiency.
News of the job cuts coincided with the release of Ocado’s full-year results. The company reported a 12% increase in group revenues, reaching £1 billion, but the cost-cutting measures signal a shift in strategy amid increasing competition and changing market dynamics.
Recent challenges for Ocado include the closure of three warehouses run by Kroger in the US and the decision by Canadian chain Sobeys to close a centre in Calgary, both due to lower-than-expected demand. These setbacks have contributed to a sharp decline in Ocado’s share price over the past year, falling more than 7% on Thursday following the announcement.
Industry analysts have suggested that Ocado has lost its early advantage in the grocery delivery market, as larger rivals have developed their own in-house technology and infrastructure. Chris Beauchamp, chief market analyst at IG, described Ocado as a “great white elephant that failed to deliver,” noting that competitors have bypassed the company’s technology by building their own solutions.
The company confirmed that the cost-saving measures, including the job cuts, are expected to generate approximately £150 million in savings. Ocado also cited “AI efficiencies” and “cost discipline” as contributing factors to the reduction in spending.
What we have is not the first round of job cuts at Ocado in the past year. The company previously cut 500 technology roles, citing increased apply of artificial intelligence in research and engineering.
