British online supermarket Ocado Retail, a joint venture between Ocado Group and Marks & Spencer, said it will stop operations at its Hatfield customer fulfilment centre this summer.
The step comes as retailers increasingly shift to robotic customer fulfilment centres, which are more productive and have lower energy usage.
Ocado said it did not expect any change to the volume of orders fulfilled due to the stoppage of operations at Hatfield.
It added that current customer orders fulfilled from the site would be moved to the company's other facilities around the UK.
Hatfield, the oldest facility in the Ocado network, has around 2,300 employees and the retailer said it has started a consultation process with them to redeploy as many people as possible to other sites, mainly to the soon-to-be-opened Luton site.
Ocado also said it expected further improvement in productivity and increased capacity for same-day deliveries with the help of new technologies.
