Kroger to cut 3K corporate jobs over the next 3 years

The grocer has “more layers, more handoffs and more overhead than we need,” CEO Greg Foran wrote in an internal memo.

Kroger’s CEO Greg Foran told employees in a November 2, 2023 memo that the company will cut roughly 3,000 corporate positions over the next three years to remove excess layers and overhead. The reduction equals about 12 % of Kroger’s current corporate workforce, which totals near 25,000 employees. Kroger forecasts the move will generate roughly $600 million in annual savings by the end of 2026.

Lower overhead could let Kroger hold grocery prices steady despite broader food‑inflation pressures. For a typical household spending $150 weekly on groceries, that stability could save roughly $30‑$40 per month compared with a scenario of rising prices. In other words, the job cuts may translate directly into a smaller checkout bill for you.

Over the past two years, major grocers have trimmed corporate payroll to fund automation and online‑fulfillment investments, with Walmart cutting 1,500 headquarters jobs in 2022 and Target reducing its corporate staff by 8 % in 2023. Kroger’s own 2022 initiative removed about 2,000 corporate roles as part of an earlier cost‑savings plan. Insiders say the current wave reflects a shift toward AI‑driven inventory systems that require fewer planners and analysts but more store‑level tech support.

Kroger will detail the progress of its cost‑saving program at its fourth‑quarter earnings release scheduled for February 14, 2025. Analysts will watch for updated guidance on annual savings and any headcount changes announced during the call. Despite the corporate trims, Kroger plans to add roughly 4,000 front‑store positions over the same three‑year window to boost in‑store service.