Ocado set to cut 400 jobs as it looks to rebuild Andover warehouse after fire
Ocado has said it will slash as many as 400 jobs after a huge fire destroyed its distribution centre in Andover.
The delivery firm’s flagship automated warehouse in Hampshire was razed to the ground in February after a three-day inferno.
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Ocado initially tried to find a suitable alternative site in the Andover area, but today said it has failed and must embark on a two-year rebuild.
“In light of the fact that the rebuild of Andover customer fulfilment centre will take at least two years to complete, it is with immense regret that we have commenced a formal consultation process,” an Ocado spokesperson said in a statement.
“We would like to thank all of our colleagues for their hard work and we will provide them with all the support we can during this process.”
Ocado said 400 of the 850 jobs in Andover were at risk, adding it hoped it could re-hire any affected employees in the future.
The Andover factory accounted for 10 per cent of the company’s capacity and could process roughly 65,000 orders a week. Shares in Ocado were down roughly two per cent following the announcement.
Daniel Adams, national officer at union Usdaw, which represents the Andover employees, said staff were “devastated” by the news.
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“Full and meaningful consultations are ongoing with the company, with a view to minimising redundancies and mitigating their impact,” he said.
“In the meantime we will continue to provide our members with the support, advice and representation they need at this very difficult time.”