Kroger to cut 3,000 corporate employees over three years — The Hill

In the United States, supermarket chain Kroger plans to cut 3,000 corporate employees over the next three years. The company will use artificial intelligence more actively to optimize operations, The Hill reports.

Betting on technology

Kroger CEO Greg Foran said in a message to employees that technology is changing approaches to work across all industries. According to him, the company needs to adapt to these changes, introduce new capabilities, reduce duplication of work and determine where it is most appropriate to perform it.

Last month, Kroger unveiled its artificial intelligence strategy. The company said its goal was to improve the customer experience, simplify work for employees and achieve better business results.

Competition and leadership

Kroger is headquartered in Cincinnati. It is the largest independent supermarket chain in the United States, with 409,000 employees and more than 2,700 stores operating under brands including Ralphs, King Soopers, Smith’s and Fred Meyer.

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Foran, who previously led Walmart’s U.S. division from 2014 to 2019, became Kroger’s CEO in February, 11 months after the sudden resignation of the previous chief executive. Kroger is facing competitive pressure from Walmart, discounters Aldi and Lidl, as well as Amazon.

In 2022, Kroger proposed a merger with Albertsons to compete more effectively with other retailers. The U.S. Federal Trade Commission and the states of Washington and Colorado went to court to block the deal, saying it could raise prices and lower employee wages by weakening competition. Judges ultimately ruled that the merger should not proceed.

The day after the deal collapsed, Albertsons sued Kroger, seeking a $600 million termination fee, as well as compensation for legal expenses and lost shareholder value. Kroger called the claims unfounded and said Albertsons was not entitled to the payment.