Kroger to cut 3,000 corporate jobs as it ramps up use of AI
Kroger, the largest independent supermarket chain in the U.S., has announced that it will lay off 3,000 corporate employees over the next three years as it increases its use of artificial intelligence to streamline operations.
Kroger, the largest independent supermarket chain in the U.S., has announced that it will lay off 3,000 corporate employees over the next three years as it increases its use of artificial intelligence to streamline operations.
In a memo to employees on Monday, CEO Greg Foran said that technology is reshaping what is possible and that the company must adapt and reduce repetitive work. Last month, Kroger unveiled an AI strategy aimed at improving the customer experience and delivering better business results.
Based in Cincinnati, the company has 409,000 employees and more than 2,700 stores under banners including Ralphs, King Soopers, Smith’s and Fred Meyer. Foran, a former Walmart executive, was appointed in February, 11 months after the abrupt resignation of the previous CEO.
Kroger is under pressure from rivals such as Walmart, Aldi, Lidl and Amazon. Its proposed merger with Albertsons, announced in 2022, was blocked in court in 2024 after challenges from the Federal Trade Commission and several states.
During the second-quarter earnings call on Tuesday, another executive, Susan Morris, said that costs would be cut further and that “aggressive” action on headcount would follow over the next 12 to 18 months. The same day, Kroger shares fell 2.2% to $61.21.