Kroger plans to cut about 3,000 corporate jobs over the next three years, roughly 37% of its 8,200 corporate employees. Chief executive Greg Foran set out the plan in a memo to staff dated October 12, 2026, which Reuters saw. Bloomberg News reported it first.
Foran’s argument was blunt. Kroger carries more management layers and overhead than it needs, he wrote, and duplicated work should go. He said the savings would help the company lower prices and put more into its in-store employees. Details of which roles and departments are affected will come “in the coming months,” he told staff, and the cuts will be phased in, not made all at once.
Kroger has not said how much the move will save or how that money will be spent.
Where AI fits
The announcement lands as the grocer pushes further into artificial intelligence. In September, Yael Cosset, its executive vice-president and chief digital officer, described a three-stage approach: assisted, augmented and autonomous. The aim, he said, was not to automate every process. Kroger would pick the level of AI involvement based on risk, repeatability and how much human judgement the task needs. The company also plans to use AI models to manage workflows and to draw on customer data for tools such as an AI shopping assistant.
Reuters framed the cuts as part of the AI shift. IBTimes UK noted a caveat, though: Kroger has not said AI is directly responsible for the redundancies.
Pressure from Walmart and Aldi
Foran took over as CEO in February 2026. He previously ran Walmart’s US business, as president and chief executive from 2014 to 2019. Kroger has already lowered its annual identical-sales target, a measure that strips out the effect of newly opened stores, and says it wants to cut prices to compete better with Walmart and Aldi as shoppers grow more frugal under pressure from high gas prices.
Cheaper shelves can win customers, but they squeeze margins, which is why the company is looking at its own overhead. This is not its first round. In June 2025, Kroger eliminated about 1,000 corporate positions.
Sources
- Kroger to Axe 3,000 Jobs in Major Layoff as Retail Giant Moves to Cut Costs | IBTimes UK
- Kroger to cut 3,000 jobs as AI use expands | The Straits Times
