Kroger plans to eliminate about 3,000 corporate jobs over the next three years, roughly 37% of its corporate workforce, as the supermarket chain simplifies operations and expands its use of AI.
CEO Greg Foran outlined the reductions in an internal memo reported by Reuters and Bloomberg. Kroger has approximately 8,200 corporate employees.
Foran said the company has too many management layers and overlapping tasks and must adapt as technology changes how work gets done. AI is one tool Kroger is increasingly using to improve workflows, according to the Bloomberg report. The memo did not specify how many of the eliminated positions would be directly replaced by AI.
The restructuring is also intended to free up resources for lower grocery prices, better service and investment in store employees. Foran, who became CEO in February, is seeking to improve Kroger’s competitiveness against lower-price rivals, including Walmart and Aldi.
Kroger expects to share more details about affected positions in the coming months. It eliminated approximately 1,000 corporate roles last year, Reuters reported.
The company outlined an AI strategy last month that includes models to manage workflows and tools that use customer data, including an AI shopping assistant, according to Reuters.