Kroger layoffs: Grocery giant will slash thousands of corporate jobs as CEO asserts need for ‘faster decisions’

Kroger, the major grocery retailer, is set to reduce its corporate workforce by more than a third over the next three years, as announced in an internal memo obtained by Fast Company. CEO Greg Foran took over the role in February, replacing interim CEO Ron Sargent. With a current corporate workforce of around 8,200 employees, the layoff will affect approximately 3,000 positions, but it will not impact store or distribution roles.

Foran emphasized the need for "faster decisions" and deploying resources more effectively, stating that Kroger's corporate operations have more lawyers, handoffs, and overhead than necessary. He added that the changes will create broader roles, enable faster decision-making, allow for lower prices, and enhance the shopping experience.

The company aims to adapt and leverage technology to achieve these goals. While the memo does not explicitly mention artificial intelligence, Kroger published an AI strategy plan in September, pledging to utilize AI models for workflow management and customer data, as well as launching an AI literacy training program for its employees.

Grocery prices have been on the rise, and Kroger, which also operates Fred Meyer and Ralphs store chains, has been striving to offer competitive prices alongside Walmart and Costco. The company has implemented price cuts across its products in an effort to stay competitive in the market.

Kroger's decision to cut jobs is not the first such move for the company. In the previous year, Kroger announced the reduction of nearly 1,000 corporate positions, which were intended to be reinvested in the company to support new locations, create more store-level jobs, and contribute to price reductions. The layoff plan was outlined by interim CEO Ron Sargent at the time.

Kroger is currently embroiled in a legal dispute with Albertsons over the collapse of their merger, which was blocked due to antitrust concerns in December 2024, according to Bloomberg. The grocery chain has also been implementing a footprint optimization plan, resulting in the closure of 60 stores since June 2025.