Kroger plans to cut roughly 3,000 corporate roles over the next three years, CEO Greg Foran told staff in a memo, seen by Reuters on Monday, as the grocer integrates AI into its workflow.
Kroger should reduce duplicative work and adapt with technology, Foran wrote in the memo, adding that the job cuts would help the company cut prices and invest in in-store employees.
Foran took over as Kroger’s CEO in February.
Companies have been rethinking corporate structures and cutting jobs as they increasingly turn to AI to streamline workflows and divert more resources toward the technology, fuelling concerns over widespread disruption across sectors.
Last month the company outlined the company’s AI strategy, including the use of models to manage workflows and leverage customer data to power tools such as its AI shopping assistant.
The grocery retailer had also lowered its annual identical sales target and said it is seeking to cut prices to better compete with rivals such as Walmart and Aldi as consumers grow more frugal under pressure from high gas prices.
Details on the job cuts, which would affect about 37% of its 8,200 corporate employees, would be shared in the coming months, Foran said in the memo.
Bloomberg News first reported on the job cuts on Monday.
In June last year, the company cut about 1,000 corporate roles.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Diti Pujara)
