Decision by Hatfield-based Ocado will hit community hard

Welwyn Hatfield MP Andrew Lewin says he is disappointed with how Ocado has handled its 1,000 job cuts. <i>(Image: Office of Andrew Lewin MP)</i>
Welwyn Hatfield MP Andrew Lewin says he is disappointed with how Ocado has handled its 1,000 job cuts. (Image: Office of Andrew Lewin MP)
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An MP said the decision by online grocer Ocado to axe 1,000 jobs will hit the community hard and has promised to do all he can to support those affected.

Speaking after yesterday's confirmation that the Hertfordshire-based company is cutting jobs, Andrew Lewin, MP for Welwyn Hatfield, said he was disappointed with the way the Hatfield-based firm had handled the situation.

In a statement, Mr Lewin said he had contacted the company some weeks ago on "the back of speculation about job losses" to seek clarification on the situation and to request a meeting about the potential impact on Hatfield.

His approach to the company was blanked with no offer of a meeting, and he said: "I’m very disappointed in how they have managed this situation."

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"Hatfield has been Ocado’s HQ for many years, and people from our community have been integral to the growth and success of the business.

"Ocado’s decision to cut hundreds of local jobs will hit hard, and my thoughts are with the employees and their families, who have done so much to build this business, but now face uncertainty about their future.

"I will do anything I can to support Welwyn Hatfield residents at risk of redundancy and to signpost people to additional support."

Mr Lewin continued: "Despite this serious setback, Hatfield and Welwyn Garden City remain excellent places to do business.

"A number of major employers choose to make our community their national headquarters, including: Computacenter, Eisai, Mitsubishi Electric Europe and Tesco.

"I am hopeful that in time, many people leaving Ocado will find good quality local jobs in our community."

Confirming the job losses earlier today, Ocado Group PLC said the decision comes as it scales back research and development investment and simplifies its operating model.

The firm said: "Following a period of rapid growth and capital investment in our technology, we believe now is the appropriate time to realign and restructure our commercial, support and R&D functions."

Ocado added that after a "very significant phase of investment in our robotics and automation capabilities," it expects technology and support costs to continue reducing.

Chief executive Tim Steiner said the changes being made would "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."

 

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