Kroger plans to eliminate 3,000 corporate jobs over the next three years while expanding its use of artificial intelligence, placing a substantial number of payroll positions in the path of a technology-led restructuring. The grocery chain says AI will streamline operations. In a Monday memo to employees, CEO Greg Foran wrote, “Technology is reshaping what's possible.”
Jobs and the AI plan
Foran wrote, “The way work gets done is changing across every industry; we must adapt and take advantage of technology.” He also said Kroger needed to “adopt capabilities, reduce duplicative work and look closely at where work is best fit to be done.” The company plans to cut 3,000 corporate employees over three years as it changes how work gets done.
Last month, Kroger outlined an AI strategy “to improve the customer experience, make work easier for associates and produce better business outcomes.” Those aims accompany the planned corporate staff reductions. The account doesn't specify which corporate roles will be cut, how the reductions will be spread across the three years, or how many employees will work with the new AI systems.
Kroger is based in Cincinnati and is the largest standalone U.S. supermarket chain. It employs 409,000 people and operates more than 2,700 stores under brands including Ralphs, King Soopers, Smith's and Fred Meyer. The planned 3,000 cuts involve corporate employees; the source doesn't say store positions are included.
Competition and consolidation
Kroger faces competition from Walmart, discount chains Aldi and Lidl, and online companies such as Amazon. Americans increasingly pick up groceries alongside other general goods sold by Walmart, according to the account, which describes the retailer as a growing challenge to Kroger and other traditional grocers.
Kroger proposed merging with Albertsons in 2022 to compete with rivals. In 2024, the Federal Trade Commission and Washington and Colorado sued to block the deal, arguing it would raise prices and lower workers’ wages by eliminating competition. Judges ultimately ruled the merger shouldn't proceed. The proposed consolidation ended without creating the combined company Kroger had sought.
The merger collapsed. A day later, Albertsons sued Kroger, seeking a $600 million termination fee, along with billions of dollars in legal fees and lost shareholder value. Kroger called the claims “baseless” and said Albertsons wasn't entitled to the fee. The account doesn't report a resolution of the lawsuit.
Leadership and unresolved workforce questions
Kroger named Foran CEO in February, 11 months after the previous CEO abruptly resigned. Foran led Walmart's U.S. division from 2014 to 2019. At Walmart, he focused on cleaning up stores, keeping items in stock and improving fresh produce selection; he also introduced online ordering and pickup and accelerated the company's digital capabilities.
Kroger shares fell 1.6% in morning trading Tuesday, to $61.66. The source gives no employee response to the planned cuts, demographic breakdown of affected workers, or details about which tasks Kroger expects AI to replace. It identifies no popular campaign or dissident group opposing the plan. The dispute pits Kroger’s stated technology and efficiency goals and planned corporate job reductions against the legal and competitive pressures surrounding its failed merger.