Kroger to eliminate 3,000 corporate jobs in three-year AI restructuring

Kroger (NYSE: KR) plans to eliminate approximately 3,000 corporate roles, representing roughly 37% of its 8,200 corporate workforce, over the next three years as it integrates artificial intelligence into its operational workflows, according to an internal staff memo seen by Reuters following an initial report by Bloomberg News.

Kroger CEO Rodney McMullen informed employees in the memo that details on the specific job cuts would be shared in the coming months, according to the report.

The strategy aims to reduce duplicative work and adapt to technology advances, with cost savings directed toward lowering retail prices and investing in store-level personnel, the report said, citing the internal memo.

The planned restructuring follows a previous workforce reduction in June of last year, when Kroger eliminated about 1,000 corporate roles, the report stated.

The announcement comes as the retail giant faces pressure from price-conscious consumers and stiff competition from low-cost rivals such as Walmart and Aldi, Reuters reported. Kroger recently lowered its annual identical sales target and signaled plans to lower prices to preserve market share, the report noted.

Last month, Kroger outlined its enterprise AI roadmap, which includes deploying AI models to streamline back-office workflows and leveraging consumer data to power digital tools such as its AI shopping assistant. Corporate restructuring efforts across the broader retail sector continue to accelerate as companies reallocate resources toward automation, according to the report.