Online grocer Ocado plans to shut its oldest distribution centre that handles up to a fifth of its customer orders each week in a move that puts 2,300 jobs at risk
- Ocado has now started consultation with the 2,300 workers based at Hatfield
Online grocer Ocado has announced plans to shut its oldest distribution centre as it shifts towards robotic warehouses, in a move that will affect around 2,300 workers.
The group said it will close the site in Hatfield, Hertfordshire, which accounts for about a fifth of its customer orders each week, later this year.
The orders will instead be shifted to a new state-of-the-art automated warehouse in Luton, which is due to open in 2023.
Ocado has now started consultation with the 2,300 workers based at Hatfield, but said it aims to offer jobs to as many of those affected as possible at nearby sites, such as Luton. The consultation is expected to close this summer.
The group said it did not expect any change to the volume of orders fulfilled by closing the Hatfield centre, adding that current customer orders fulfilled from the site would be moved to the company’s other facilities around the UK.
Ocado plans to shut its Hertfordshire customer fulfilment centre. Pictured are Ocado delivery vans returning to the depot in Hatfield
Tim Steiner, CEO of Ocado Group and Chairman of Ocado Retail told MailOnline: ‘As the online grocery channel grows, our new, enhanced fulfilment centres and technologies will drive a step change in customer experience and efficiency.
‘With this capacity coming online, now is the right time for us to halt operations at our oldest facility at Hatfield and consider our future options for the site.
‘Ocado.com customers will continue to enjoy the same outstanding standard of service throughout the region, which will further improve as the benefits of our new technologies are deployed across the network.
‘We have many brilliant Hatfield-based colleagues who have been with us for a long time and are a big part of our journey.
‘We want to keep as much of this talent and experience within the business as possible and expect to retain a large proportion of colleagues impacted by these changes, either in our new Luton CFC or across our wider UK network.
‘We will be doing everything we can to support those affected through the consultation.’
More to follow.
