Kroger's AI Push: The Numbers Behind 3,000 Planned Corporate Job Cuts

Kroger plans to lay off 3,000 corporate employees over the next three years as it expands its use of artificial intelligence, according to ABC News and Fox Business. CEO Greg Foran announced the move in a memo to staff on Monday.

The cuts target corporate roles rather than store jobs. Kroger says it wants to cut duplicative work and put the savings toward lower grocery prices and its store employees, Fox Business reported, citing Reuters.

The key numbers

• 3,000 jobs: The planned corporate layoffs would be spread over three years, according to both outlets.
• 37%: Reuters reported that this is the share of Kroger's corporate workforce the cuts would affect.
• 8,200: That is the approximate size of the corporate workforce, per Reuters as cited by Fox Business.
• 409,000 employees and more than 2,700 stores: Kroger is the largest standalone U.S. supermarket chain, ABC News reported. Its brands include Ralphs, King Soopers, Smith's and Fred Meyer.
• 1,000 jobs: Kroger cut approximately this many corporate positions in June 2025, according to Reuters.
• 1.6%: Kroger shares fell by this amount in morning trading Tuesday, to $61.66, ABC News reported.

What is behind the cuts

In his memo, Foran said technology is changing how work gets done in every industry and that Kroger must adapt. He said the company needs to adopt new capabilities, reduce duplicative work and look closely at where work is best done. ABC News published the memo's language.

The layoffs follow an AI strategy Kroger laid out on Sept. 22. According to Fox Business, 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. Chief Digital Officer Yael Cosset said the investments would let Kroger act on operational information faster.

Kroger also said it was making AI training and tools available to more than 400,000 employees, per Fox Business.

Foran, a former Walmart executive, became Kroger's CEO in February, 11 months after the previous chief executive resigned abruptly, ABC News reported. He ran Walmart's U.S. division from 2014 to 2019, where he expanded online ordering and pickup.

The competitive pressure on Kroger

ABC News said Walmart has become a bigger challenge for traditional grocers as more Americans buy groceries alongside general goods. Kroger has also faced pressure from fast-growing discounters such as Aldi and Lidl, and from online rivals such as Amazon. Fox Business noted that the planned reductions come as sales growth at the chain slows.

Kroger's attempt to merge with Albertsons, proposed in 2022, was blocked after the Federal Trade Commission and two states, Washington and Colorado, sued in 2024. Judges ultimately ruled the deal should not proceed, ABC News reported.

What this means for workers and shoppers

For Kroger's corporate staff, the plan means a multi-year period of job losses that would reach more than one in three positions, based on the Reuters figures. The company has not said which roles or locations would be affected. Fox Business said Kroger did not respond to its request for comment.

For shoppers and store employees, Kroger's stated goal is to use the savings to lower grocery prices and invest in store workers, according to Reuters as reported by Fox Business. The company has not detailed how much money would be redirected or when any price changes might take effect.

What happens next

Fox Business reported that Kroger expects to share more details on the planned cuts in the coming months. The company is scheduled to hold an investor update on Oct. 20, where it expects to discuss its strategic initiatives and longer-term financial targets.

Sources: ABC News, Fox Business