Ocado Group is set to slash headcount, despite experiencing a strong full-year performance, with its group revenue increasing by 12.2 per cent to £1.4bn in its preliminary full-year results.

The group adjusted EBITDA went up to £178m from £112m in the same period last year.

The company’s online grocery delivery sector Ocado Retail delivered a strong performance, with orders going up by 13.1 per cent.

Ocado Retail’s revenue grew by 15.4 per cent to £84m compared to £45m in the results in the year prior.

Tim Steiner, CEO of Ocado Group, said: “FY25 was a year of tangible progress for Ocado. EBITDA grew strongly, and we saw an increase of 26 per cent in volumes processed through our international sites. Our latest CFC was delivered in record time, and we accelerated the roll-out of our latest technologies around the world.

“We are also reshaping parts of our organisation to focus our commercial strategy and simplify our operating model as we re-engage in multiple international markets, following the end of exclusivity arrangements.”

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As part of its restructuring plan to save around £150m in costs, the business will be introducing advanced technology and cutting off around 1,000 roles.

Details of the specific roles set to be affected and the locations are yet to be disclosed.

Steiner said: “These changes will also reflect the lower structural cost base that we have signalled over recent years.

“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.”

The business expects to turn cash flow positive during the second half of FY26 and predicts an Ocado Logistics high mid-single-digit revenue growth and an EBITDA of between £30 and £35m.

Last year the company’s shares went down after the announcement of three Kroger warehouses closing last year in November. Ocado received an early closure fee of around £190.51m from the US supermarket giant.