Ocado will cut 500 jobs in its technology and finance divisions as part of measures to reduce costs using artificial intelligence, which has increased the productivity of its engineering teams. Despite having already reduced headcount by 1,000 in the previous year, this new reduction affects its technological innovations and online grocery services, including its partnership with Marks & Spencer.
CEO Tim Steiner explained the necessity of cost-cutting to meet cashflow targets and that AI is improving warehouse robot productivity, facilitating fewer staff needs as sales increase.