Ocado technology workers at the company’s Barcelona tech hub are considering strike action after Ocado launched a collective redundancy process affecting 122 employees located there.
An employee representative committee has been set up and held a protest outside the Barcelona office last week, with a second being organised later this week.
The redundancies – about which staff are currently being consulted – will affect 72% of the headcount at the Barcelona office, leaving just 47 roles remaining.
The committee allege that Ocado is shifting the roles – which include engineers, data scientists and product managers – to other Ocado offices in Europe where labour is cheaper, namely Poland and Bulgaria.
“We are facing a decision that will devastate 122 highly skilled professionals and their families,” a spokesperson for the employee representative committee told The Grocer.
“Ocado has cited operational and organisational reasons, but the evidence points to something far more straightforward: the company is relocating activity to countries where labour is cheaper. After 10 years building a centre of excellence in Barcelona, our colleagues deserve fair compensation and proper protection,” they added.
There are currently 14 job listings for roles at Ocado sites in Poland and Bulgaria. Ocado Group declined to comment.
The Barcelona tech hub – which opened 10 years ago – manages the key partnerships in the Spanish market, including with Alcampo and Bon Preu.
The collective redundancy process was formally communicated to staff in February.
Early last year, Ocado shared its strategy of “rigorous cost and capital discipline” and its plan to significantly reduce its technology spend to around £60m – down from around £250m in 2025 – in 2027. And having spent big on research & development, the company at the time said it was “now moving into a new R&D cycle that will focus on a smaller number of targeted enhancements to our platform”.
In February, Ocado CEO Tim Steiner confirmed “a significant number” of jobs would be lost as the group shifted to a “lower structural cost base”.
It is understood the move will lead to 1,000 jobs being lost – or 5% of the company’s 20,000-strong workforce – with the UK to take the brunt of the pain as the axe falls on the Hatfield headquarters in Hertfordshire.
As part of the restructure, Ocado will fold its commercial brands Ocado Solutions and Ocado Intelligent Automation into a single entity, and cut back on R&D.
No comments yet