Ocado must reduce hundreds of jobs in its technological teams in the efforts of the online grocery specialist to reduce costs using artificial intelligence to help research and engineering.
The company, which employs around 20,000 people, said that AI had helped improve the productivity of its engineering team, allowing it to reduce 500 roles through its technological and financial divisions. Ocado had already reduced its workforce by 1,000 during the last financial year.
The technological group develops robotic picking and delivery tools for online retailers from around the world and co -ownership of the British grocery delivery service Ocado with Marks & Spencer.
Group Managing Director Tim Steiner said he had to reduce costs to achieve cash targets. He said that the planned cuts were “never something easy or that we take lightly. It’s a very difficult day for us to have to announce this. »»
Steiner said: “We take advantage of AI -type tools that increase the productivity of our engineering teams and spend less in the future for research and development.”
He said the group, which employs 10,000 people in the United Kingdom, continued to deploy its new technology led by robots to customers who include Kroger in the United States and the Casino in France, but that a large part of its current development series was focused on software and required less staff.
Steiner said IA also helped improve robots productivity in its warehouses, allowing it to take fewer workers as sales are increasing.
In its most advanced warehouse in Luton, more than a third of the individual items are now chosen robotically and the group expects 70% of the types of products to be chosen by robots in the near future.
The group’s shares plunged 17%, reflecting the disappointment of its prediction that technology sales would only increase by 10% this year, against 18% last year, in the midst of delays for two new warehouses for its American partner Kroger, as it added additional technology.
Steiner said that the United States was a “very important global market” for Ocado and that two Kroger warehouses would not be affected by any taxes because “almost all” the necessary kit was already in the country.
He said Ocado “did not want to rush to make changes” in a fluid situation on prices, but that if there were long-term changes to the importation of Ocado technology in the United States, the group had already examined the possibility of moving production on the Atlantic.
Ocado revealed a loss before tax of 374.5 million pounds Sterling for the year on December 1, shrinking by 394 million pounds Sterling a year earlier, despite sales from 14% to 3.1 billion pounds sterling. Large profitability gains in technology and retail trade have been offset by the cost of writing aging equipment.
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The company has completely struck off a final payment hoped for the sale of participation in its retail company in M&S, annihilating the last 29.1 million pounds sterling of the 190 million pounds Sterling initially from its balance sheet.
Steiner said the negotiations were continuing, but M & s said it would not pay the costs because the performance objectives were not achieved. Ocado, who previously threatened legal action on this subject, said that he had spent 1.3 million pounds sterling during the year to initiate specialists to support his argument that the objectives should be adjusted.
There was a burst of job cuts in the grocery sector. Aldi consults plans for restructuring of the registered office which could cause up to 350 roles.
According to the Gazette grocery store, which reported the plan for the first time, changes will affect finances and certain purchasing roles. Aldi said: “No basic role of the customer is assigned and no final decision will be made until the consultation process is completed.”
Last month, Sainsbury’s said it was Cut 3,000 roles With the closure of hot food counters and internal cafes, while Tesco reduces 400 roles from its head office and stores.