Ocado Group is planning to cut around 1,000 jobs as part of a restructuring programme, as the online grocery and technology business confirmed its Leeds rapid-delivery site was not actively trading at the end of the financial year.
The company said a “significant number” of roles would no longer be required as it reduces costs and simplifies its operating model. The planned cuts represent about 5% of Ocado’s global workforce.
About two-thirds of the job losses are expected to be in the UK, with most reductions concentrated at the company’s headquarters in Hatfield, Hertfordshire. Ocado has not indicated whether any Northern roles will be affected.
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However, the company’s latest results statement shows its Leeds Zoom rapid-delivery site was not actively trading at year end, although it continued to be classified as a live facility and fees were still being received.
The Leeds Zoom site, based in Hunslet, launched in 2022 as Ocado’s first rapid-delivery hub outside London. The facility was designed to offer deliveries within an hour or later the same day and created around 130 local jobs when it opened.
Ocado confirmed in late 2023 that it would close the Leeds Zoom operation following a consultation, saying the location was not suitable for the high volumes required by the rapid-delivery model. Customers in the area continue to be served through Ocado’s standard online grocery service.
The latest update suggests the site remains part of Ocado’s network in accounting terms despite no longer actively operating.
The announcement came alongside Ocado’s full-year results, which showed group revenue rising 12% to £1.36bn for the year to 30 November.
Chief executive Tim Steiner said the business was moving into a new phase after several years of heavy investment in robotics and automation.
“These changes will also reflect the lower structural cost base that we have signalled over recent years,” he said.
“Regrettably, this means a significant number of roles will no longer be required. We will support those impacted through this process.”
Ocado said it shipped 72 million orders worldwide during the year and reported 26% growth in international volumes processed through its automated fulfilment centres.
The company employs about 20,000 people globally, with the majority based in the UK.
