Ocado Group Plc CEO Tim Steiner is set to resign at the start of the 2028 financial year, a decision that follows a boardroom conflict and diverging shareholder opinions regarding his leadership. Steiner, a co-founder of the online grocery delivery firm, will collaborate with the board to identify his successor and will continue with the company in a "founder" capacity through 2029. This development comes as Ocado has been struggling with various setbacks and a significant drop in its stock value.
The leadership change follows a plot in late June to oust Steiner, led by Ocado's chair Adam Warby and key shareholder Jörn Rausing, due to the company's stock price hitting a decade low. Sky News reported Warby had already identified Niklas Heuveldop, CEO of Vonage, as a potential successor. However, this attempt backfired as a top-ten shareholder, representing a quarter of the FTSE 250 company's shares, advocated for Warby's removal instead, supported by long-term investors like Nicholas Roditi, who backed Steiner's continued leadership.
In February, Ocado announced it would cut approximately 1,000 jobs, or 5% of its global workforce, primarily in research and development roles within the UK. This move was part of a cost-saving initiative to reduce capital expenditure on deploying its warehouse technology and achieve positive cash flow. Ocado's stock has declined by about 20% over the last six months and is down nearly a quarter year-to-date, almost 90% below its 2020 peak.
The company's challenges also include setbacks with its North American partners. After signing a deal for 20 automated warehouses in 2018, U.S. retailer Kroger decided to shut down three facilities and withdraw from a fourth earlier this year. Similarly, Canadian partner Sobeys also indicated closures of robotic customer fulfillment centers due to weaker-than-expected demand. Despite these issues, financial performance in full-year 2025 showed revenue of approximately $1.8 billion, a 12.1% increase, and adjusted EBITDA rose to roughly $240 million from $151 million. The company also returned to a statutory profit of approximately $532 million, although accounting factors largely contributed to this improvement.
