Kroger plans to eliminate about 3,000 corporate roles over the next three years. That is roughly 37% of its 8,200-person corporate workforce, according to an internal memo reported by Reuters and Bloomberg. A Kroger representative confirmed the plan to Newsweek.
CEO Greg Foran told employees the company has too many layers, handoffs, and overhead. He said the changes would “create broader roles and faster decision-making.” He added: “Simplifying means making faster decisions and deploying more resources where they matter most.” The savings are meant to fund lower prices and investment in store associates.
AI is part of the plan. The memo says Kroger wants to build AI further into its operations. In September, the company published an AI strategy that covers customer data and AI agents for customer service and workforce productivity.
Kroger has not said which roles or locations are affected, or what severance it will offer. The memo says more details will come in the coming months.
The cuts follow a difficult stretch for the grocer:
Earlier layoffs: Kroger cut nearly 1,000 corporate roles last August, under interim CEO Ron Sargent.
Store closures: It has announced about 60 store closures over 18 months, roughly 5% of its stores.
Failed merger: Regulators blocked its $25 billion merger with Albertsons on antitrust grounds. Albertsons is seeking more than $9 billion from Kroger over the collapse, according to court filings.
Weaker outlook: In September Kroger cut its full-year same-store sales guidance to 0.2%–0.8%, down from 1%–2%. Foran cited reduced SNAP benefits, higher fuel prices and weaker consumer confidence.
Price war: In May, Foran said Kroger would cut prices across many products to compete with Walmart and Costco.
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