British online grocery and technology company Ocado is planning another round of job cuts as it looks to reduce costs after a tough year for its automated warehouse business, according to a report by The Times.
The report said Ocado could cut up to 1,000 jobs, or around 5% of its workforce, with most reductions expected at its UK head office. The proposed layoffs are likely to affect technology teams and back-office functions like legal, finance and human resources. Discussions are still at an early stage, and a final decision has yet to be taken, the report added.
Ocado has already taken several steps in this direction. Last year, it announced plans to cut 500 technology and finance roles as it scaled back spending on research and development. This followed 1,000 layoffs across the group in financial year 2023-24 (FY24).
3 February 2026
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Notably, an Ocado spokesperson told Reuters that the company regularly assesses its operations and that when decisions are made which affect employees, it is committed to communicating clearly and providing support. The Times reported that an official announcement regarding the job cuts could come as early as this month.
Ocado's latest cost-cutting push follows a series of setbacks over the past year. In 2025, US supermarket chain Kroger, Ocado's largest customer, had reportedly said that it would shut down three automated warehouses, dealing a blow to Ocado's technology services business.
However, Ocado later said that it expects new opportunities after exclusivity agreements with Kroger expired in most markets in December, allowing the company to sell its robotic warehouse technology to a wider range of customers. Ocado currently supplies automated fulfilment systems to retailers like Aeon in Japan, Lotte Shopping in South Korea and Coles in Australia.
The company's robotic technology enables online grocery orders to be picked and dispatched from large, highly automated warehouses, reducing reliance on in-store fulfilment.
In July, Ocado said its top priority was to turn cash-flow positive in FY26, which began in December, by aggressively cutting costs. The company aims to remain cash-positive for a full year in the next financial year.
