Ocado is planning to cut 1,000 jobs, an estimated 5% of its workforce, as the online grocery retailer seeks to cut costs.

The company said it was aiming to reduce £150m in costs by the 2027 financial year and that a “significant number of roles will no longer be required”.

Ocado, which has a workforce of around 20,000 people, announced the cuts as part of its annual results for the year to 30 November, which revealed the online grocer recorded a 12.1% jump in group revenue to £1.36bn.

However, the FTSE 250 group’s pre-tax losses at its continuing operations widened to £377.6m, and its share price has slipped by more than 10% in today’s trading.

This follows another significant fall in the company's share price earlier this year, when one of Ocado’s grocery partners in Canada, Sobeys, announced the closure of a customer fulfilment centre (CFC) in Calgary.

Ocado CEO, Tim Steiner, CEO of Ocado Group, said the company would “reshape” parts of the organisation to focus commercial strategy and simplify its operating model.

“These changes will also reflect the lower structural cost base that we have signalled over recent years,” he commented. “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. We will support those impacted through this process.”

---