Find out what clicks on FoxBusiness.com.
Kroger plans to cut about 3,000 positions over the next three years as the grocery giant expands its use of artificial intelligence and seeks to reduce costs, according to a report.
The planned cuts would affect about 37% of Kroger’s roughly 8,200 employees, Reuters reported Monday, citing an internal memo from CEO Greg Foran.
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 needed to eliminate duplication and adapt to changing technology, with the cuts intended to free up resources to lower food prices and invest in store workers, Reuters reported.
MICROSOFT PRESIDENT SAYS AI FACE LESS SAFETY RULES THAN MILK IN CALL FOR GLOBAL REGULATION
A Kroger grocery store in Covington, Kentucky on June 2, 2024. (Jeffrey Dean/Bloomberg via Getty Images)
Additional details on the planned reductions are expected to be shared in the coming months.
The job cuts follow a broader AI strategy that Kroger outlined in September aimed at improving the efficiency of its operations.
In a September 22 announcement, the company said it was expanding its use of first-party and third-party AI models to streamline workflows, improve decision-making and help employees manage daily tasks.
Independent grocers can sometimes be “left out” of selling products offered exclusively to large national chains, Ferrara told FOX Business. (Will Newton/Getty Images)
Yael Cosset, Kroger’s chief digital officer, said the company’s latest investments in AI will allow it to act more quickly on operational insights.
“Our latest investments in AI allow us to connect relevant business and operational signals to make decisions and act faster,” Cosset said.
STARBUCKS SAYS IT WON’T BUY CHIPOTLE FOLLOWING DEAL SPECULATION
A Kroger grocery store in Dallas, Texas on February 21, 2024. (Shelby Tauber/Bloomberg via Getty Images)
The company also said it is 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.
The latest planned cuts would follow a previous round of job cuts at companies. Kroger cut about 1,000 corporate positions in June 2025, according to Reuters.
Kroger did not respond to a request for comment from FOX Business.
CLICK HERE TO GET FOX BUSINESS ON THE GO
The company is expected to hold an investor update on October 20, during which it plans to share additional details on its strategic initiatives and long-term financial goals.
Gn bussni
