News Summary

Ocado, the UK-based retail technology company, is planning a major restructuring that includes cutting around 1,000 jobs, equivalent to about 5% of its global workforce. This move is part of a strategy to slash costs by £150 million, primarily targeting technology and support expenses. The company, which operates robotic warehouses for supermarket chains, intends to merge its Ocado Solutions and Ocado Intelligent Automation divisions to streamline operations. The restructuring is driven by the closure of several warehouses operated in partnership with North American companies, including Canadian supermarket chain Sobeys, which recently closed its fulfillment center in Calgary. This decision follows similar closures by Ocado’s US partner, Kroger. The closures have significantly impacted Ocado’s business model, leading to a 17% drop in its share value. Ocado’s financial report shows widened pre-tax losses of £377.6 million for the year, compared to £339.8 million in the previous year. Despite these challenges, Ocado aims to become cash flow positive by the second half of 2026.