Ocado Group said on Thursday it would cut around 1,000 jobs over the coming year as part of a restructuring designed to remove £150 million from its technology and support cost base by 2027, affecting about 5 per cent of its 20,000-strong global workforce.

The company said roughly two-thirds of the roles will go in the UK, primarily at its Hatfield headquarters, with about half of the reductions in technology and the remainder in support functions. Retail staff in its UK grocery joint venture are not included in the cuts.

Tim Steiner, chief executive, said the overhaul followed the completion of a major phase of investment in robotics and automation. “Regrettably, this means a significant number of roles will no longer be required,” he said, adding that the group would support affected employees and that ongoing research and development spending would focus on areas with a clearer path to value creation.

The announcement came alongside full-year results for the 52 weeks to 30 November 2025 showing group revenue up 12 per cent to £1.36 billion. Adjusted earnings before interest, tax, depreciation and amortisation rose to £178 million from £111.7 million, while pre-tax losses at continuing operations widened to £377.6 million from £339.8 million.

Shares fell by more than 7 per cent in early trading, extending a decline of more than a quarter over the past year after setbacks in North America. US partner Kroger is closing three robotic warehouses run by Ocado, while Canadian grocer Sobeys said in January it would shut a facility in Calgary citing slower than expected growth in online grocery demand.

Chris Beauchamp, chief market analyst at IG, told the BBC that rivals had opted to develop their own online capabilities. “Rather than use Ocado’s technology, they have instead built their own and simply bypassed the newcomer,” he said, describing the group as “the great white elephant that failed to deliver”.

Verushka Shetty, equity research analyst at Morningstar, told Sky News that recent site closures had weakened investor confidence, though she said longer-term growth drivers remained in capital-light solutions and intelligent automation. She warned of a potential “negative flywheel effect” if slower warehouse rollouts deterred prospective partners.

Ocado is merging its Ocado Solutions and Ocado Intelligent Automation divisions into a single unit and consolidating commercial teams under a new chief revenue officer as it shifts to a less capital-intensive development cycle.

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