Ocado layoffs explained: Why 5% of jobs are cut, which roles are affected, and what’s next for global expansion

Ocado layoffs 2026: Ocado is set to reduce its workforce by around 1,000 employees, approximately 5% of its global staff, as the retail technology company restructures to save £150 million in costs. About two-thirds of the job cuts are expected in the UK, with roughly half affecting technology roles and the remainder in support functions, as per a report.

Why Ocado Is Reducing Its Workforce in 2026

The company, headquartered in Hatfield, Hertfordshire, provides software and robotic solutions for supermarket chains’ warehouses. According to CEO Tim Steiner, the cuts come as Ocado completes a new generation of robotic equipment and website and app technology, now being delivered to clients worldwide, as per The Guardian.

AI is also playing a role in the changes. Steiner highlighted that productivity improvements from AI are helping the company write and check software code, allowing it to “get more done with fewer people,” as quoted by The Guardian.


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Ocado Layoffs 2026: North American Setbacks Affect Ocado’s Expansion Plans

The decision follows setbacks in North America, where Ocado’s partners have closed several warehouses. Steiner admitted that the market for large automated distribution centres in the US is smaller than expected. Still, demand for Ocado technology remains strong, particularly for smaller-scale systems that can improve local store operations.

Ocado Merges Divisions to Streamline Operations

As part of the restructuring, Ocado will merge Ocado Solutions and Ocado Intelligent Automation into a single division, scaling back R&D and support to streamline operations. Steiner reassured employees, saying the company has “zero expectation of more job cuts” in the near future and pledged support for those affected.

Ocado Stock Fell Following Job Cut Announcement

Shares fell almost 7% following the announcement, reflecting investor concerns as Ocado’s market value has dropped by more than a third over the past year. Despite the challenges, the company reported a 12% increase in sales to £1.4 billion for the year ending November 30, while underlying pre-tax losses remained high at £353 million.

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Global Expansion Plans: New Robotic Distribution Centres

Ocado continues to expand internationally, planning six new robotic distribution centres in Japan, South Korea, the US, and Spain to offset recent closures in North America. Its UK retail arm, a joint venture with Marks & Spencer, reported a 15% sales increase to £3 billion, narrowing operating losses from £48.5 million to £27.5 million.

FAQs

How many jobs is Ocado cutting?
Around 1,000 positions, roughly 5% of its global workforce.

Where will most of the job cuts happen?
About two-thirds are expected in the UK.