Kroger plans to eliminate 3,000 corporate roles, memo shows, as it expands AI use

Kroger, a major grocery retailer, plans to reduce approximately 3,000 corporate roles over the next three years, as revealed in a memo seen by Reuters. CEO Greg Foran addressed staff in the memo, explaining that the job cuts are necessary for the company to integrate AI into its workflow. Foran emphasized that reducing duplicative work and adapting to technology would enable Kroger to lower prices and invest more in in-store employees.

The company has been reevaluating its corporate structure and downsizing as it increasingly relies on AI to optimize workflows and allocate more resources towards the technology, raising concerns about widespread disruption across various sectors. In June last year, Kroger had already let go of around 1,000 corporate positions. The retailer recently shared its AI strategy, which includes using AI models to manage workflows and utilize customer data to power tools like its AI shopping assistant.

As gas prices continue to put pressure on consumers, making them more frugal, Kroger has also lowered its annual identical sales target and aims to cut prices to remain competitive with rivals such as Walmart and Aldi. Specific details on the job cuts, which would affect roughly 37% of the company's 8,200 corporate employees, will be disclosed in the coming months according to Foran.