Ocado delays diversity targets amid DEI scrutiny

Ocado has delayed its target for increasing ethnic minority representation in senior management to 2030, extending its original 2027 goal.

This move comes amid a broader pullback of diversity and inclusion (DEI) initiatives across the corporate world, as companies reassess their strategies in light of growing scrutiny.

The London-listed tech company, which operates the Ocado Retail joint venture with M&S, had initially aimed for 10% ethnic minority representation in senior roles by 2027, but has now revised that timeline.

This decision aligns with a wider trend among major corporations, such as McDonald’s, Meta, and Amazon, which have scaled back DEI initiatives in response to political pressures, including an executive order by US President Donald Trump banning DEI programs at federal agencies.

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Ocado stressed the delay is not a retreat from its commitment to DEI but reflects its “strong rate of retention” among senior managers, making it unlikely to meet the 10% target sooner.

“We remain dedicated to diversity as a key driver of innovation, but our current focus is on supporting our talented management team,” said an Ocado spokesperson.

The company’s ethnic minority representation in senior roles stands at 5.6%, up from 4.5% the previous year.

Despite this adjustment, the business has reaffirmed its commitment to a diverse workforce, with ongoing efforts to foster talent pipelines and expand diversity across its operations.

The retailer is also continuing to focus on meeting other diversity objectives throughout its business.

In addition to its diversity changes, Ocado is dealing with financial challenges, reporting a pre-tax loss of £375m for the latest financial year, despite growth in its online grocery retail division.

It has been making cost-cutting efforts, including recent job reductions in its R&D division, and aims to achieve profitability by 2026.

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