Kroger to cut 3,000 corporate roles, 37% of office staff, in tech-driven overhaul

Kroger will eliminate roughly 3,000 corporate positions over the next three years, a reduction equal to about 37% of its 8,200 corporate employees, the company told Business Insider. The cuts were announced in a memo to staff from chief executive Greg Foran dated Monday, 12 October. Kroger said decisions on which specific roles will go will start being communicated "in the coming months."

Foran framed the restructuring around two priorities: simplification and technology. He wrote that Kroger carries "more layers, more handoffs and more overhead" than it needs, and that faster decisions and resources shifted to the highest-impact areas are the goal. On technology, he said work is changing across every industry and Kroger must adapt to take advantage of it. The memo does not specify how many roles artificial intelligence will replace.

The grocery giant laid out its AI strategy in September, according to Fortune. The tools include systems that forecast demand and personalise savings for shoppers, features that help customers plan meals and build carts around a budget, and AI agents designed to help store teams prioritise daily tasks. Kroger also offers AI training to more than 400,000 employees. Foran said the savings from the corporate cuts will allow continued investment in frontline workers and move resources closer to customers in the form of lower prices.

Kroger is the largest standalone supermarket chain in the US, the Associated Press reported. It employs 409,000 people, operates more than 2,700 stores and runs banners including Ralphs, King Soopers, Smith's and Fred Meyer. Foran, who became chief executive in February, previously ran Walmart's US business from 2014 to 2019. Kroger now competes for the same shoppers as Walmart, Aldi and Lidl, and Walmart is adding its own store technology such as light-up shelf labels.

Kroger is part of a wider wave of corporate job cuts tied to AI adoption. HubSpot plans to cut 660 jobs as it pivots toward AI, and Amazon reportedly trimmed retail roles this month. Retail analyst Neil Saunders, who has tracked Kroger's turnaround under Foran, told Fortune that any price benefit for shoppers may be limited — if spread across products, the investment would take only cents off an average basket, he said. He added that not every cut stems from automation, arguing Kroger's corporate structure was already bloated and inefficient, so some reductions would have happened regardless of new technology.

Investors reacted negatively to the news. Kroger shares fell 2.2% to $61.21 in afternoon trading on Tuesday, according to the Associated Press.