American grocery chain Kroger to cut 3,000 corporate jobs over three years due to AI expansion | Today’s news
US supermarket giant Kroger plans to cut around 3,000 corporate jobs over the next three years as it expands its use of artificial intelligence (AI) and restructures operations to improve efficiency, a move that would affect more than a third of its corporate workforce.
Kroger decided to cut 3,000 jobs and incorporate AI
CEO Greg Foran announced the cuts in a memo to employees on Monday, Oct. 12, saying changing technology and duplicate responsibilities necessitated a leaner organizational structure.
“Technology is reshaping what’s possible,” Foran wrote, adding that society must adapt to changes in how work is done across industries. He said Kroger will embrace new capabilities, eliminate overlapping tasks and reevaluate where work should be done.
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The planned cuts would reduce Kroger’s corporate workforce from about 8,200 employees to about 5,200.
The company said decisions on the affected positions will begin to be communicated in the coming months. The announcement refers to corporate roles rather than suggesting comparable reductions in supermarket and distribution staff.
The AI push accompanies a broader restructuring
Kroger outlined its AI strategy last month, describing it as a way to improve the customer experience, make employees’ jobs easier and drive better business results.
The company explored how technology can streamline workflows and improve customer-facing services.
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Foran’s latest announcement juxtaposes these ambitions with a broader effort to eliminate organizational layers and reduce administrative costs.
In a statement, the CEO said the changes will help Kroger make faster decisions and direct more resources to frontline employees. The company is also working to lower prices and improve the shopping experience in its stores and online.
However, the announcement does not state that AI alone will replace the 3,000 employees. Kroger cited a combination of technological changes, duplication of work and organizational restructuring as reasons for the cuts.
Competition in the US food market is intensifying
Kroger, headquartered in Cincinnati, Ohio, operates more than 2,700 stores under brands including Ralphs, Fred Meyer, King Soopers and Smith’s. It employs approximately 409,000 people across its business, which means the company is reducing a significant restructuring of its central workforce.
The company is facing increasing pressure from Walmart, discount supermarket chains Aldi and Lidl and online retailer Amazon. Consumers looking for lower prices and the convenience of grocery shopping alongside other household goods have intensified competition across the industry.
Foran, who took over as CEO in February after previously leading Walmart’s U.S. division, has focused on improving operational efficiency and strengthening Kroger’s competitiveness.
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The latest announcement follows another round of restructuring in June 2025, when Kroger cut nearly 1,000 corporate positions, according to Reuters.
A failed merger increases business pressures
Kroger’s proposed merger with rival Albertsons, announced in 2022, was intended to strengthen its position against larger competitors.
But the U.S. Federal Trade Commission and state authorities have challenged the deal, saying it could restrict competition and harm consumers and workers. The courts eventually blocked the merger in 2024.
Albertsons subsequently sued Kroger over the failed transaction, seeking a termination fee and other damages. Kroger disputed the claims.
The planned job cuts are now part of a wider attempt to simplify operations, control costs and compete in a market where technology and pricing are becoming increasingly important for supermarkets.
