OCADO is planning a new round of redundancies as it steps up cost-cutting after a difficult year for its automated warehouse arm.

Up to 1,000 jobs, or around five per cent of its global workforce, are understood to be at risk, with discussions still at an early stage.

Any announcement could come this month, ahead of Ocado's full-year results on 26 February, with most cuts expected to fall on UK head office roles.

The move follows earlier reductions, after Ocado cut 500 roles last year and around 1,000 jobs in 2023/24, as it sought to rein in spending while pushing towards cashflow breakeven.

Pressure has intensified after key North American partners scaled back. US grocer Kroger and Canada's Sobeys both announced closures of Ocado-run automated warehouses, weighing heavily on the shares, which are down nearly a third over the past year. Ocado continues to operate five sites for Kroger and supports its logistics operations, and Sobeys uses two warehouses to support its online business.

The Hertfordshire-based group sells automation technology allowing retailers to pick and dispatch online food orders from giant robotic warehouses. It also runs a UK online grocery firm as a joint venture with Marks & Spencer.

Ocado said: "We regularly review our operations to ensure we're set up for long-term success," saying that staff would be supported if decisions are taken.

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