UK's Ocado plans to cut up to 1,000 jobs for cost savings, says Sunday Times

• Job cuts follow setbacks including Canadian partner Sobeys closing its Calgary robotic warehouse and U.S. partner Kroger pausing three automated warehouses
• Ocado stated in July its core priority is achieving cash-flow positive status in its 2025/26 fiscal year (starting December) through cost reductions
• The company is scheduled to report annual results on February 26

Summary: Ocado Plans Job Cuts Amid Restructuring

British online grocery and technology firm Ocado is reportedly planning to eliminate up to 1,000 jobs, representing approximately 5% of its workforce, according to a Sunday Times report. The cuts are part of a renewed cost-reduction initiative following a challenging period for the company's automated warehouse business.

Key Details:

• An announcement could come as early as February 2025
• Most redundancies expected at UK headquarters, targeting technology teams and back-office functions including legal, finance, and human resources
• Ocado did not confirm the cuts but stated it "regularly reviews operations" and would support affected employees
• Annual results scheduled for February 26

Business Challenges:

Ocado's automated warehouse model has faced multiple setbacks recently. Canadian partner Sobeys closed its Calgary robotic warehouse, while Kroger—Ocado's largest partner in the U.S.—paused three automated warehouse projects last year. These developments signal growing concerns about the viability and scalability of Ocado's technology partnerships.

Strategic Direction:

In July of the previous year, Ocado announced its core priority was achieving cash-flow positive status during fiscal year 2025/26 (beginning December 2025) through cost reductions, with full-year cash positivity targeted for the following year.

Market Implications:

The job cuts underscore mounting pressure on Ocado to demonstrate profitability as its warehouse automation technology faces adoption challenges from key retail partners. The restructuring reflects broader difficulties in the automated retail technology sector and raises questions about the company's growth trajectory and partnership stability. Investors will closely watch the February 26 results for additional strategic guidance and financial performance indicators.