Kroger, the nation's largest standalone supermarket chain, said it will cut 3,000 corporate jobs over the next three years, a move the company attributes to the growing role of artificial intelligence in streamlining operations.
In a memo to employees Monday, CEO Greg Foran framed the layoffs as an inevitable response to technological change. “Technology is reshaping what’s possible,” he wrote. “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.”
The Cincinnati-based grocer, which operates more than 2,700 stores under banners including Ralphs, King Soopers, Smith’s and Fred Meyer, employs roughly 409,000 people. Last month, the company outlined an AI strategy aimed at improving customer experience, easing workloads for associates and driving better business outcomes.
Foran, a former Walmart executive, took the helm in February, less than a year after his predecessor’s abrupt resignation. Known for his tech-savvy, hands-on approach, Foran led Walmart’s U.S. division from 2014 to 2019, where he focused on store cleanliness, inventory management and fresh produce, while also accelerating the retailer’s digital ordering and pickup capabilities.
Walmart has emerged as a formidable rival to Kroger and other traditional grocers, as shoppers increasingly bundle grocery purchases with general merchandise. Kroger also faces pressure from discount chains like Aldi and Lidl, as well as online giant Amazon.
In 2022, Kroger proposed a merger with Albertsons to better compete, but the Federal Trade Commission and two states—Washington and Colorado—sued to block the deal in 2024, arguing it would drive up prices and suppress wages by eliminating competition. Courts ultimately sided with regulators, and the merger was scrapped.
Days after the deal collapsed, Albertsons sued Kroger, seeking a $600 million termination fee plus billions in legal costs and lost shareholder value. Kroger called the claims “baseless” and said Albertsons was not entitled to the fee.
The layoffs come as grocers increasingly turn to automation and digital tools to cut costs. Some industry observers note that digital price tags have already sparked pushback from unions and consumers, and the broader shift to AI could intensify those tensions.
Kroger’s stock slipped 1.6% in morning trading Tuesday to $61.66, reflecting investor caution about the company’s restructuring and ongoing legal battles.
