Ocado said it is cutting up to around 1,000 jobs across its UK and worldwide workforce as it looks to reduce costs by about £150 million as part of a restructure. The retail group, which operates warehouses for supermarkets, is expected to make the bulk of cuts in its Hertfordshire head office, including technology roles and back office staff. The redundancies will amount to 5% of the firm’s global workforce and follow plans announced last year to scale back its technology costs from £290 million in 2024 to £60 million by 2027.

Ocado chief executive Tim Steiner said: “Regrettably, this means a significant number of roles will no longer be required. We are grateful to colleagues who are affected by these changes, and whose talent and hard work have made a lasting contribution to Ocado.”

He added: “We will support those impacted through this process.”

A spokesperson for Ocado previously said it “regularly reviews its operations to ensure we’re set up for long-term success” and pledging to “communicate with staff directly and ensure they are supported throughout”.

As well as allowing retailers to pick and dispatch online food orders from giant robotic warehouses, Ocado runs an online grocery firm as a joint venture with Marks and Spencer.

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Last month, Ocado also confirmed that its partner Canadian supermarket Sobeys would close its warehouse in Calgary in a further blow to technological operations.

One of its key US partners Krogers also announced plans to close three robotic warehouses across the country last year, sparking a drop in share price.

Ocado and Krogers had planned to launch a further 20 robotic manufacturing centres across America, but the roll-out has been slower than expected.