Ocado shares tumble again after online grocer posts £375m losses as it plans to cut R&D jobs

By DAILY MAIL CITY & FINANCE REPORTER

Updated: 22:03 GMT, 27 February 2025

Ocado shares fell 18 per cent as it plans to scale back its research and development (R&D) staff after another year of heavy losses.

The group, which runs robotic warehouses for other chains alongside its Ocado Retail joint venture with Marks & Spencer, has spent more than £800million on R&D over the past four years.

Chief executive Tim Steiner declined to say how many jobs would go, but claimed it would be ‘significantly’ fewer than the 1,000 redundancies in 2023-24.

He added: ‘It’s never something that’s easy or that we take lightly. It’s a very difficult day for us to have to announce that.’

The group, which employs nearly 20,000 people, has R&D sites across the world, with about half in the UK.  It lost £374.5million for the year to December 1, down year-on-year £393.6million. Revenues rose 14.1 per cent to £3.2billion – but shares fell 18.1 per cent, or 1.59p, to 273p.

The firm is still in talks with Ocado Retail partner M&S over a final payment of £190.7million due in April under their £750m tie-up. 

The venture has failed to meet performance, with Ocado saying last February that it could take legal action against M&S over the payment.

DIY INVESTING PLATFORMS

AJ Bell

AJ Bell

Easy investing and ready-made portfolios

Hargreaves Lansdown

Hargreaves Lansdown

Free fund dealing and investment ideas

interactive investor

interactive investor

Flat-fee investing from £4.99 per month

Saxo

Saxo

Get £200 back in trading fees

Trading 212

Trading 212

Free dealing and no account fee

Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.

Compare the best investing account for you

:
Ocado shares tumble again after online grocer posts £375m losses as it plans to cut R&D jobs

***
Read more at DailyMail.co.uk