Tech and AI

Kroger will cut 3,000 corporate jobs over three years as it builds artificial intelligence into how work is done

By Staff Writer  |  14 October 2026

The largest standalone supermarket chain in the United States told staff the company has too many layers and handoffs. Its chief executive did not say which departments will be affected.

Kroger, the largest standalone supermarket chain in the United States, will lay off 3,000 corporate employees over the next three years as it increases its use of artificial intelligence to simplify its operations. The chief executive, Greg Foran, set out the plan in a memo to employees on Monday 12 October.

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Greg Foran, Chief Executive Officer of Kroger

In the memo he wrote that the way work gets done is changing across every industry, and that the company must adapt, reduce duplicated work and look closely at where work is best done. He also wrote that the grocer has more layers, more handoffs and more overhead than it needs, and that changes would create broader roles and faster decisions, freeing resources to lower prices and invest in store staff.

What is and is not known

Mr Foran did not give a specific timeline for the layoffs or say which departments would be affected. Kroger outlined its artificial intelligence strategy last month, describing its aims as improving the customer experience, making work easier for staff and producing better business outcomes, and it has recently appointed a chief data and AI officer.

Based in Cincinnati, Kroger has 409,000 employees and more than 2,700 stores trading under brands including Ralphs, King Soopers, Smith's and Fred Meyer. Mr Foran, a former Walmart executive who led that company's US division from 2014 to 2019, became chief executive in February, 11 months after the abrupt resignation of his predecessor. At Walmart he introduced online ordering and pickup, and since joining Kroger he has appointed former Walmart executives as its first e-commerce chief and as chief store operations officer.

The cuts apply to corporate roles, and the memo gives no figure for any change to store employment.

The competitive pressure

The company faces pressure from Walmart, from discount chains and from online retailers, and has said it needs lower prices and a better shopping experience. Kroger shares fell 2.2 per cent in afternoon trading on Tuesday, to 61.21 dollars.

Kroger is also in dispute with Albertsons over their failed merger, which was blocked in 2024 after a challenge by the Federal Trade Commission and two states; Albertsons is seeking damages, which Kroger says it is not entitled to. How quickly the corporate cuts proceed, and which functions the new tools replace first, will be the measure of the strategy over the three years the memo sets out.