US-based grocery chain Kroger to cut 3,000 corporate jobs over three years amid AI expansion

US supermarket giant Kroger plans to eliminate approximately 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.

Chief executive Greg Foran announced the reductions in a memo to employees on Monday, 12 October, arguing that changing technology and duplicated responsibilities had made a leaner organisational structure necessary.

“Technology is reshaping what’s possible,” Foran wrote, adding that the company needed to adapt to changes in how work is performed across industries. He said Kroger would adopt new capabilities, eliminate overlapping tasks and reassess where work should be carried out.

The planned cuts would reduce Kroger’s corporate workforce from approximately 8,200 employees to around 5,200.

The company has said decisions about affected positions will begin to be communicated in the coming months. The announcement concerns corporate roles, rather than indicating a comparable reduction in its supermarket and distribution workforce.

AI push accompanies wider restructuring

Kroger outlined its AI strategy last month, describing it as a way to improve the customer experience, make employees’ work easier and deliver better business results.

The company has been exploring how technology can streamline workflows and improve customer-facing services.

Foran’s latest announcement places those ambitions alongside a broader effort to remove organisational layers and reduce administrative costs.

In his memo, the chief executive said the changes would help Kroger make decisions faster and direct more resources towards frontline employees. The company has also been working to lower prices and improve shopping experiences in its stores and online.

However, the announcement does not establish that AI alone will replace the 3,000 employees. Kroger has cited a combination of technological change, duplicated work and organisational restructuring as reasons for the reductions.

Competition intensifies in US grocery market

Based in Cincinnati, Ohio, Kroger 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, making the corporate cuts a significant restructuring of its central workforce.

The company faces growing pressure from Walmart, discount supermarket chains Aldi and Lidl, and online retailer Amazon. Consumers seeking lower prices and the convenience of buying groceries alongside other household goods have intensified competition across the sector.

Foran, who took over as chief executive in February after previously leading Walmart’s US division, has focused on improving operational efficiency and strengthening Kroger’s competitiveness.

The latest announcement follows another round of restructuring in June 2025, when Kroger eliminated nearly 1,000 corporate positions, according to Reuters.

Failed merger adds to business pressures

Kroger’s proposed merger with rival Albertsons, announced in 2022, was intended to strengthen its position against larger competitors.

However, the US Federal Trade Commission and state authorities challenged the deal, arguing that it could reduce competition and harm consumers and workers. Courts ultimately blocked the merger in 2024.

Albertsons subsequently sued Kroger over the failed transaction, seeking a termination fee and additional damages. Kroger disputed the claims.

The planned job cuts now form part of a wider attempt to simplify operations, control costs and compete in a market where technology and pricing have become increasingly important to supermarket businesses.