UK's Ocado to eliminate up to 1,000 jobs in cost-cutting drive, Sunday Times reports

Feb 8 (Reuters) - British technology and online grocery group Ocado OCDO.L plans to cut up to 1,000 jobs, or roughly 5% of its workforce, as part of a renewed cost-cutting drive following a difficult year for its automated warehouse business, the Sunday Times reported.

An announcement could be made as soon as this month, with most redundancies expected at Ocado's UK head office among technology teams and back‑office roles including legal, finance and human resources, the report said, citing an unnamed source.

Asked to comment on the report by Reuters, an Ocado Group spokesperson said the company regularly reviews its operations.

"If and when decisions are made that affect our people, we are committed to communicating with them directly and ensuring they are supported throughout," the spokesperson said in a statement, without giving further details.

Ocado has suffered recent setbacks, including a decision by a customer, Canadian supermarket operator Sobeys, to close its robotic warehouse in Calgary.

Last year, U.S. grocer Kroger  KR.N, Ocado's largest customer, said it was shutting three automated warehouses.

Ocado said in December that it would be able to sell its robotic warehouse technology to more customers after exclusivity arrangements expired in most of its markets.

The robotic technology allows stores to pick up and dispatch online food orders from vast warehouses. Customers include Aeon 8267.T in Japan, Lotte Shopping 023530.KS in South Korea and Coles COL.AX in Australia.

The company reaffirmed in July that its core priority was to turn cash-flow positive during its 2025/26 year - which started in December - by reducing costs, and to be full-year cash positive in the following year.

It is due to report annual results on February 26.