The UK technology and online grocery group Ocado could cut up to 1,000 jobs, or 5% of its workforce, as part of a cost-cutting drive. 

First reported by The Sunday Times, the supermarket revealed that it would largely be cutting roles across its technology and office teams, including legal, finance and human resources. 

It cited a difficult year for its automated warehouse business as the primary reason. 

The decision also follows a series of setbacks, such as the closure of a Sobeys warehouse in Canada, which had been using Ocado’s delivery technology. 

Likewise, last year saw the closure of three automated warehouses by US grocer Kroger, which was previously Ocado’s largest customer. 

According to NIQ data for February 2026, Ocado still remained the fastest-growing retailer in the UK, ahead of Lidl, which was close behind. 

This came as UK shoppers shifted to healthier diets and opted for more low & no alcohol drinks, according to Nielsen. 

Looking to the future, Ocado said that it would be able to sell its warehouse technology to more customers after many exclusivity arrangements expired at the end of 2025.