US supermarket chain Kroger plans to cut 3,000 corporate jobs over three years as it expands its use of artificial intelligence (AI) to streamline operations.
Chief executive Greg Foran outlined the planned redundancies in a memo to employees.
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“Technology is reshaping what’s possible. 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”, Foran, as reported by Associated Press, wrote.
Kroger last month set out an AI strategy intended “to improve the customer experience, make work easier for associates and produce better business outcomes”.
Kroger is one of the largest standalone US supermarket chains, employing 409,000 people and operating more than 2,700 stores under brands including Ralphs, King Soopers, Smith’s and Fred Meyer.
Foran was appointed in February, 11 months after the abrupt resignation of the company’s previous CEO.
He led Walmart’s US division from 2014 to 2019, where he introduced online ordering and collection and accelerated the retailer’s digital capabilities.
The job cuts coincide with legal action by Albertsons following the collapse of the companies’ proposed merger.
Kroger proposed the merger in 2022 to compete more effectively with rivals, but the Federal Trade Commission and the states of Washington and Colorado sued to block the transaction in 2024, arguing it could raise prices and reduce workers’ wages by eliminating competition.
Judges subsequently ruled that the merger should not proceed.
Albertsons filed a lawsuit against Kroger after the merger collapsed, seeking more than $9bn, including a termination fee, legal costs and compensation for shareholder value it claims was lost.
In its latest financial update, issued last month, Kroger reduced its full-year 2026 guidance for identical sales, excluding fuel, to 0.2%-0.8%, from the 1%-2% range it set in June 2026.
In July, Kroger agreed to acquire privately held food and pharmacy retailer Giant Eagle in a transaction valued at $1.65bn.
