Kroger Plans to Cut 3,000 Corporate Jobs as Grocery Giant Expands AI Use

Kroger is planning to eliminate approximately 3,000 corporate positions over the next three years as the grocery giant expands its use of artificial intelligence and looks to cut costs, according to an internal memo obtained by Reuters.

The planned cuts would affect roughly 37% of Kroger's approximately 8,200 corporate employees, CEO Greg Foran said in the memo. The restructuring comes as Kroger faces pressure to improve sales, keep grocery prices competitive and streamline operations through increased use of AI.

Foran said the company needs to eliminate duplicative work and adapt to changing technology, with the reductions intended to free up resources to lower grocery prices and invest in store employees.

The job cuts follow a broader AI strategy Kroger outlined in September. In a Sept. 22 announcement, 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.

Kroger Chief Digital Officer Yael Cosset said the company's latest investments in AI would allow it to act more quickly on operational information. "Our latest investments in AI allow us to connect relevant business and operational signals to make decisions and take action faster," Cosset said.

The company also said it was making AI training and tools available to more than 400,000 employees across its operations. The planned reductions also come amid slowing sales growth at the grocery chain.

This would follow a previous round of corporate job cuts: Kroger eliminated approximately 1,000 corporate positions in June 2025.

The company is scheduled to hold an investor update on Oct. 20, when it expects to share additional details about its strategic initiatives and longer-term financial targets.

Reporting by Fox Business. Read the original report: Kroger plans to cut 3,000 corporate jobs as grocery giant expands AI use.