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Kroger is planning to eliminate approximately 3,000 corporate positions over the next three years as the grocery giant expands its use of artificial intelligence and looks to cut costs, according to a report.
The planned cuts would affect roughly 37% of Kroger’s approximately 8,200 corporate employees, Reuters reported Monday, citing an internal memo from CEO Greg Foran.
The restructuring comes as Kroger faces pressure to improve sales, keep grocery prices competitive and streamline operations through increased use of AI.
Foran said the company needs to eliminate duplicative work and adapt to changing technology, with the reductions intended to free up resources to lower grocery prices and invest in store employees, Reuters reported.
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A Kroger grocery store in Covington, Ky., June 2, 2024. (Jeffrey Dean/Bloomberg via Getty Images)
Additional details about the planned cuts are expected to be shared in the coming months.
The job cuts follow a broader AI strategy Kroger outlined in September aimed at improving efficiency across its operations.
In a Sept. 22 announcement, the company said it was expanding its use of proprietary and third-party AI models to streamline workflows, improve decision-making and help employees manage daily tasks.
Independent grocers can sometimes be “boxed out” of selling products offered exclusively to major national chains, Ferrara told FOX Business. (Will Newton/Getty Images)
Kroger Chief Digital Officer Yael Cosset said the company’s latest investments in AI would allow it to act more quickly on operational information.
“Our latest investments in AI allow us to connect relevant business and operational signals to make decisions and take action faster,” Cosset said.
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A Kroger grocery store in Dallas, Texas, Feb. 21, 2024. (Shelby Tauber/Bloomberg via Getty Images)
The company also said it was making AI training and tools available to more than 400,000 employees across its operations. The planned reductions also come amid slowing sales growth at the grocery chain.
The latest planned reductions would follow a previous round of corporate job cuts. Kroger eliminated approximately 1,000 corporate positions in June 2025, according to Reuters.
Kroger did not respond to a request for comment from FOX Business.
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The company is scheduled to hold an investor update on Oct. 20, when it expects to share additional details about its strategic initiatives and longer-term financial targets.
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