Kroger to Cut 3,000 Corporate Jobs Over 3 Years as It Leans Into AI
Kroger plans to cut about 3,000 corporate jobs over the next three years as the nation's largest standalone supermarket chain leans more heavily on artificial intelligence to streamline its operations.
CEO Greg Foran announced the cuts in a memo to employees on Monday. "Technology is reshaping what's possible," Foran wrote, according to ABC News.
A Third of Corporate Staff
The cuts would affect roughly 37% of Kroger's approximately 8,200 corporate employees, according to Reuters. The announced cuts apply to corporate roles, not workers in Kroger's stores.
In the memo, Foran said Kroger has "more layers, more handoffs and more overhead than we need." He said the changes would help the company become "leaner, more focused and more competitive," with "broader roles and faster decision making," Grocery Dive reported.
Foran wrote that Kroger has made progress in recent months on lowering prices and improving the shopping experience, but suggested its structure is still too complex. Kroger said decisions about which roles will be affected will be shared in the coming months. The company has not said which departments will be hit hardest or what severance employees will receive.
Leaning Into AI
The job cuts follow a September 22 announcement in which Kroger said it was expanding its use of both its own and third-party AI models to streamline work and improve decision-making. The company also said it was giving AI training and tools to more than 400,000 employees.
Chief Digital Officer Yael Cosset said at the time that the investments would help Kroger "connect relevant business and operational signals to make decisions and take action faster," Fox Business reported.
Kroger is far from alone. Companies across many industries have been trimming office jobs as they adopt AI tools, and AI-related layoffs have been on the rise.
What It Could Mean for Shoppers
Foran has framed the cuts as a way to free up money to lower grocery prices and invest in store employees. Since taking over as CEO in February, he has made lowering prices a priority as Kroger tries to keep up with rivals.
Foran previously ran Walmart's U.S. division from 2014 to 2019. He joined Kroger 11 months after his predecessor's abrupt resignation and has since brought in several new senior leaders, including a chief data and AI officer. Two of his hires, e-commerce chief Nate Faust and chief store operations officer Mark Ibbotsen, are former Walmart executives.
The Cincinnati-based company faces growing pressure from Walmart, Costco, Aldi, Lidl and Amazon. Kroger's market share has slipped recently while several of those competitors have gained ground. The company told Bloomberg in May that it planned price cuts across its stores. That same day, Walmart expanded its own price cuts to more than 7,000 items.
Kroger, which operates more than 2,700 stores and employs about 409,000 people, also owns brands including Ralphs, King Soopers, Smith's and Fred Meyer. Earlier this year, it agreed to buy Giant Eagle in a $1.65 billion deal.
A Busy Stretch for Kroger
The announcement comes during a turbulent period for the grocer. Kroger previously cut about 1,000 corporate positions in June 2025.
It is also still dealing with fallout from its failed merger with Albertsons. The two grocers agreed to combine in 2022, but federal and state regulators sued to block the deal, and judges ultimately ruled it should not go forward. Albertsons is now seeking at least $8 billion in damages, with a trial set to begin October 19 in Delaware. Kroger has called the claims "baseless."
Kroger shares fell 1.6% to $61.66 in morning trading Tuesday. The company plans to share more details with investors at an update on October 20, one day after the Albertsons trial is scheduled to start.
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