Ocado Group PLC is preparing to cut up to one thousand jobs, or roughly five per cent of its global workforce, as part of a renewed cost-cutting initiative aimed at strengthening its financial position after a difficult period for its automated warehouse operations.

The planned redundancies, first reported by the Sunday Times, could be formally announced as early as this month and are expected to affect mainly roles at the company’s United Kingdom head office, including technology teams and back-office functions in legal, finance and human resources.

The group has emphasised that it regularly reviews its operations and would communicate directly with employees if decisions are made.

Ocado’s announcement comes amid ongoing pressure to achieve positive cash flow, a target the company reaffirmed last year as part of wider efforts to improve cost discipline and capital allocation.

The business has faced a series of setbacks, including the closure of robotic warehouses operated with key partners such as North American grocers Kroger and Sobeys, which cut into revenue potential and raised questions about the scalability of its automated fulfilment technology.

Despite these challenges, Ocado said it remains committed to supporting its workforce through any changes and would seek to provide support and communicate with affected staff directly.

The potential job cuts add to a broader restructuring narrative at Ocado, which has previously implemented workforce reductions and stepped-up cost control measures as part of its drive towards financial sustainability.

The company’s strategy includes ending mutual exclusivity arrangements in many markets to expand commercial opportunities and seeking new contracts for its technology solutions.

Ocado’s annual results are due later this month, and market observers will be watching closely for further financial guidance as the group navigates a competitive and evolving online grocery and logistics landscape.