US supermarket chain Kroger plans to eliminate 3,000 corporate roles, memo shows, as it expands AI use
Kroger's CEO said the grocer should adapt with technology and that job cuts would help the company invest in in-store employees.
CINCINNATI, Ohio – Kroger, the US supermarket chain, is set to eliminate around 3,000 corporate positions over the next three years, CEO Greg Foran announced in a memo obtained by Reuters on October 12, as the company integrates artificial intelligence into its operations. According to Foran, the job cuts aim to eliminate redundant tasks and enable the firm to adapt to technological advancements.
By reducing corporate roles, Kroger hopes to lower prices and invest more resources into in-store employees, according to Foran's memo. The retail giant has been reconsidering its corporate structure and downsizing as it increasingly relies on AI to optimize workflows and allocate more funds towards the technology, raising concerns about extensive job displacement across various industries.
In September, Kroger unveiled its AI strategy, which includes employing models to manage workflows and utilize customer data to power tools like its AI shopping assistant. The grocery retailer has also lowered its annual identical sales goal and plans to reduce prices to compete effectively with rivals such as Walmart and Aldi as consumers become more price-conscious due to rising fuel costs.
The specifics of the job cuts, which would impact approximately 37% of Kroger's 8,200 corporate employees, will be disclosed in the coming months, Foran stated in the memo. Bloomberg News broke the news of the job cuts on October 12, citing Reuters as the source. In June 2025, Kroger had previously reduced its workforce by around 1,000 corporate roles.
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