Home / Business and Economy / Ocado Shares Tank Amid Job Cuts and Investor Woes
Ocado Shares Tank Amid Job Cuts and Investor Woes
26 Feb
Summary
- Ocado slashes 1,000 jobs, 5% of global workforce, to cut costs.
- Investor patience wanes as Ocado's technology deals stall.
- Shares down over 10% as sales growth fails to impress investors.
Ocado is implementing a substantial cost-cutting measure that will result in the elimination of 1,000 jobs, approximately 5% of its global workforce. The majority of these redundancies, roughly two-thirds, will occur in the UK, primarily at the company's headquarters in Hatfield, Hertfordshire. This decision follows a previous reduction in its research and development staff last year.
Investors have expressed growing impatience as Ocado has struggled to materialize new technology deals with existing partners. While the company reported a 12.1% jump in sales to £1.4 billion for the year ended November 30, 2025, this growth has not appeased shareholders. The technology arm saw a 13% sales increase, and its logistics division grew by 11.5%.
Recent setbacks include the closure of Ocado's Calgary fulfillment center in partnership with Sobeys in Canada and the planned closure of three robotic warehouses by US retail giant Kroger. Analysts note that Ocado's innovative technology has been overshadowed by larger, more established rivals who have developed their own solutions. Ocado Retail, however, has shown resilience with a 15.4% sales increase last year.
