UK's Ocado to axe up to 1,000 jobs in cost-cutting drive, Sunday Times reports

Ocado's Job Cuts and Business Challenges

Feb 8 (Reuters) - British technology and online grocery group Ocado plans to cut up to 1,000 jobs, or roughly 5% of its workforce, as part of a renewed cost-cutting drive following a difficult year for its automated warehouse business, the Sunday Times reported.

Details of Job Reductions

An announcement could be made as soon as this month, with most redundancies expected at Ocado's UK head office among technology teams and back‑office roles including legal, finance and human resources, the report said, citing an unnamed source.

Impact on Operations

Asked to comment on the report by Reuters, an Ocado Group spokesperson said the company regularly reviews its operations.

Future Financial Goals

"If and when decisions are made that affect our people, we are committed to communicating with them directly and ensuring they are supported throughout," the spokesperson said in a statement, without giving further details.

Ocado's business model has suffered a number of recent setbacks, including a decision by its Canadian supermarket partner Sobeys to close its robotic warehouse in Calgary.

Last year, U.S. grocer Kroger , Ocado's biggest partner, said it was closing three automated warehouses.

The company reaffirmed last July that its core priority was to turn cash-flow positive during its 2025/26 year - which starts in December - by reducing costs, and to be full-year cash positive in the following year.

It is due to report annual results on February 26.

(Reporting by Abu Sultan and Channdi Shah in Bengaluru; Editing by Joe Bavier and Helen Popper)