Ocado cut close to 1,000 jobs last year in a bid to reduce costs in the face of a challenging online grocery market.
The online supermarket and tech company revealed it now employs 18,869 people in its latest annual report, a drop from 19,744 a year before, reported The Times.
The job cuts were partly due to “rationalisation” within its head office and support function, leading to cost savings of £17m, but were also the result of the closure of its Hatfield facilities last year, its older warehouse.
It was to be replaced by the group’s newer customer fulfilment centres, such as a new site in Luton, which uses automation and other technology – including robot picking and packing features – and therefore needs fewer staff.
A consultation was launched for its 2,300 Hatfield workers last year, with half of the staff deployed to Luton.
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The company said it “continued to optimise our cost base and ensure it reflects the current and future needs of the business”.
Since its annual report was published in February, its headcount has growth to around 19,000.
Ocado officially dropped out of the FTSE 100, after six years on the list. The technology group’s relegation was prompted by a fall in share price, after its valuation dropped from £22bn during the pandemic to just £2.51bn.
Its share price took another battering last week when it emerged that Canadian partner Sobeys had put the brakes on a new fulfilment centre as the pair agree to “end terms related to their mutual exclusivity”.
However, its Ocado Retail joint venture with M&S has been flying of late. It retained its title as the fastest growing grocer for the fourth month in a row, with sales rising by 10.7% over the 12 weeks period to 9 June, according to Kantar data.
