Welwyn Hatfield Borough Council is seeking an "urgent meeting" with Ocado over plans to close their Hatfield warehouse.
The distribution centre is the company's oldest site and accounts for about a fifth of its 400,000 customer orders each week, but Ocado plans to move order to a new state-of-the-art robotic warehouse in Luton.
2,300 jobs are now at risk, with the council demanding Ocado meet with them to discuss how staff will be supported.
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"We were shocked and disappointed to learn of Ocado’s decision to close its Customer Fulfilment Centre in Hatfield," said a spokesman.
"Ocado’s Hatfield CFC has been in operation for 20 years and many of the 2,300 staff that will be affected by the closure are local residents.
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"We have written to Ocado’s CEO seeking an urgent meeting to better understand their plans to support local residents and the wider community as a result of this significant change.
"Ocado’s UK and global head office will remain at Hatfield so we will also be seeking clarity and reassurance about their future plans for their operations in Hatfield, including the future of the Hatfield CFC.
"Ocado’s decision to close their Hatfield CFC is particularly disappointing as it comes at a time when our multi-million-pound projects to regenerate Hatfield’s town centre through the Hatfield 2030+ programme are being delivered.
"We will work with Ocado to ensure that local residents and communities have the support they need at this distressing time."
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Ocado Group chief executive Tim Steiner said: "As the online grocery channel grows, our new, enhanced fulfilment centres and technologies will drive a step change in customer experience and efficiency.
"With this capacity coming online, now is the right time for us to halt operations at our oldest facility at Hatfield and consider our future options for the site."
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