Kroger says it will cut 3,000 corporate jobs over the next three years as CEO Greg Foran accelerates the grocery chain's use of artificial intelligence.
The move comes as the company faces mounting pressure from Walmart, discount grocers Aldi and Lidl, and Amazon.
Here's what to know
According to ClickOrlando.com, Kroger has told employees it will cut 3,000 corporate positions over three years while increasing its use of AI to make operations more efficient.
Based in Cincinnati, the company is the country's largest standalone supermarket chain, with 409,000 employees and more than 2,700 stores, including Ralphs, King Soopers, Smith's, and Fred Meyer.
Foran described the shift in a memo to employees, writing: "Technology is reshaping what's possible. The way work gets done is changing across every industry; we must adapt and take advantage of technology. We need to adopt capabilities, reduce duplicative work, and look closely at where work is best fit to be done."
Wall Street's early reaction appeared cautious, with Kroger stock down 1.6% to $61.66 in early trading on Oct. 13. Kroger had already outlined an AI strategy tied to improving the customer experience, making work easier for associates, and producing better business outcomes.
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More background
Foran became Kroger's CEO in February, stepping in 11 months after the previous chief executive's abrupt departure. He ran Walmart's U.S. division from 2014 to 2019 and built a reputation as a tech-minded, detail-focused operator.
While at Walmart, Foran pushed for cleaner stores, better product availability, and a stronger fresh produce department. He also expanded online ordering and pickup, accelerating Walmart's digital growth.
After Kroger failed to complete its proposed Albertsons merger, the company continued to face competitive pressure from Aldi, Lidl, and Amazon. The deal was proposed in 2022, but in 2024, the Federal Trade Commission and the states of Washington and Colorado sued to stop it. They argued that it would reduce competition, raise prices, and suppress workers' wages.
Courts ultimately ruled that the merger would not move forward. After the deal collapsed, Albertsons sued Kroger for a $600 million breakup fee plus billions in legal costs and lost shareholder value, and Kroger called the claims "baseless," according to ClickOrlando.com.
What's being done?
Kroger says the AI push is intended to benefit both customers and store associates, but it is also central to a companywide efficiency effort. In Foran's memo, the job cuts were presented as part of adopting new capabilities and reconsidering how work is assigned.
The strategy pairs efforts to sharpen operations in a fiercely competitive market with the costs and consequences of deploying more advanced tech at scale. With the Albertsons merger blocked, Kroger appears to be betting more heavily on internal transformation instead.
Where can I learn more?
These stories look at how companies are pairing AI investment with layoffs, backlash, and broader operational shake-ups.
• Across major industries, more than 113,000 workers lose jobs as companies pour $725 billion into AI.
• Veteran investors are warning of a "terrifying" impact AI could have on employment across sectors.
• PepsiCo is pushing major AI expansion as another consumer giant remakes operations around automation.
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