Kroger Plans to Slash 37% of Corporate Jobs in Next Three Years

Kroger Co. plans to cut more than one-third of its corporate headcount as the grocer seeks to simplify operations and compete more effectively under new Chief Executive Officer Greg Foran.

The Cincinnati-based company will eliminate about 3,000 roles across various functions over the next three years, according to a memo viewed by Bloomberg News. Kroger has approximately 8,200 corporate employees, making this round of cuts one of the biggest in the company’s 143-year history.

Layoffs are among the latest changes at Kroger as Foran — a former Walmart Inc. executive who started as the top Kroger boss in February — carries out big moves amid slowing growth, heightened competition and persistent inflation concerns.

“Simplifying means making faster decisions and deploying more resources where they matter most,” Foran wrote in the memo to staff after a companywide call on Monday, adding that the largest traditional US supermarket operator has more layers and overhead than needed.

Kroger, with a large number of stores across the South and Midwest, should reduce duplicative work and adapt as technology continues to evolve, he noted. This includes the rise of artificial intelligence, which the company is increasingly using to make its workflow more efficient.

Kroger expects to start sharing details about the affected roles in the coming months. The reductions will help the company put more resources toward cutting prices, improving shopping experience and investing in frontline employees, Foran wrote in the memo.

Foran, who helped turn around Walmart’s US business in the mid- to late 2010s, is implementing Kroger’s biggest price cuts in years, while making service in stores friendlier and faster. The operator of Fred Meyer and Ralphs chains is also taking a more aggressive approach toward supplier negotiations.

The company laid off nearly 1,000 corporate employees last year to cut costs.

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