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Kroger, the Cincinnati-based grocery giant, announced plans to lay off 3,000 corporate employees over the next three years. The company made the announcement on Monday, stating that the layoffs are part of a strategy to integrate artificial intelligence (AI) into its operations. According to Reuters, CEO Greg Foran explained in a memo that the job cuts will help reduce duplicative work and allow the company to invest in in-store employees.
Kroger, which employs about 409,000 workers and operates more than 2,700 stores nationwide under various brands like Ralph's, Smith's, and Fred Meyer, aims to improve customer experience and business outcomes through AI. The company outlined its AI strategy last month, highlighting the use of models to manage workflows and leverage customer data, Spectrum News 1 reports.
The layoffs will affect approximately 37% of Kroger's 8,200 corporate employees. Details on the job cuts will be shared in the coming months. The company has also lowered its annual identical sales target and plans to cut prices to better compete with rivals like Walmart and Aldi as consumers become more frugal due to high gas prices.
Kroger's restructuring comes after the collapse of its $25 billion merger with Albertsons, which also announced job cuts last month. In June of the previous year, Kroger had already cut about 1,000 corporate roles, as reported by Layoff Today.