Ocado confirms job losses amid £150m cost-cutting drive 

Ocado has confirmed that “significant” job losses are expected as it looks to target £150m of cost savings through a major restructuring, whilst focusing on investments in technology and research and development (R&D). 

It comes as EBITDA soared by 59% to £178m in its latest full-year results, up from £112m the prior year, while group revenues rose by 12.1% to £1.36bn over the period. 

Statutory profits rose to £395m, up from a loss of £374m in FY24, though its pre-tax loss widened to £377m, up from a loss of £399m the prior year. 

Its results come as the group said it would look to save around £150m following more investment in technology, including AI, instead targeting “cost discipline” in its support functions. 

As part of the restructuring, the group confirmed it will consolidate Ocado Solutions and Ocado Intelligent Automation into a single organisation, “pursuing opportunities in both grocery and adjacent sectors from a single point of sales and account management”.

It said that following a period of rapid growth and capital investment in technology, it is “now the appropriate time to realign and restructure our commercial, support and R&D functions”. 

In North America, the company also closed underutilised sites and concentrated activity in locations with “stronger operational and financial performances”. International sites reported a 26% rise in volumes processed, however. 

Ocado added that it expects to be “on track” to turn cash flow positive in the second half of FY26, with full year cash generation in FY27.

Tim Steiner, CEO of Ocado Group, said: “FY25 was a year of tangible progress for Ocado. EBITDA grew strongly, and we saw an increase of 26% in volumes processed through our international sites. Our latest CFC was delivered in record time and we accelerated the roll-out of our latest technologies around the world. We remain on track to turn cash flow positive during FY26 and deliver full year cash generation in FY27.

“Our ongoing R&D investment will be concentrated on areas where we see the clearest path to value creation for Ocado and our partners. We are also reshaping parts of our organisation to focus our commercial strategy and simplify our operating model as we re-engage in multiple international markets, following the end of exclusivity arrangements.”

He added: “Regrettably, this means a significant number of roles will no longer be required. We are grateful to colleagues who are affected by these changes, and whose talent and hard work have made a lasting contribution to Ocado. We will support those impacted through this process.”