Supermarket giant Kroger plans to eliminate 3,000 corporate positions over the next three years as it turns to artificial intelligence to streamline its business operations.
"Technology is reshaping what’s possible," CEO Greg Foran wrote in a memo to employees on Monday. "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 cutbacks follow an AI strategy outlined last month intended "to improve the customer experience, make work easier for associates and produce better business outcomes."
Headquartered in Cincinnati, Kroger is the largest standalone U.S. supermarket operator, employing 409,000 workers across more than 2,700 locations, including banners such as Ralphs, King Soopers, Smith’s and Fred Meyer.
Foran, a former Walmart executive, was named CEO in February, 11 months after the abrupt departure of the company's previous leader.
Known for a tech-focused and detail-driven approach, Foran ran Walmart’s U.S. division from 2014 to 2019, where he focused on store upkeep, inventory levels, fresh produce, and scaling up digital ordering and pickup.
Kroger faces growing pressure from Walmart as consumers increasingly combine grocery shopping with general merchandise buys, as well as from discount chains like Aldi and Lidl and e-commerce giant Amazon.
To better stand up to rivals, Kroger announced a merger with Albertsons in 2022. However, courts blocked the combination in 2024 following lawsuits by the Federal Trade Commission and two states, Washington and Colorado, which argued the deal would eliminate competition, raise prices, and lower wages.
The day after the merger fell apart, Albertsons sued Kroger for a $600 million termination fee along with billions in legal expenses and diminished shareholder value.
Kroger called the claims "baseless" and rejected the idea that Albertsons was owed the fee.
Shares in Kroger declined 1.6% to $61.66 during trading on Tuesday morning.
