Kroger to lay off 3,000 corporate employees over 3 years as it leans
into artificial intelligence
[October 14, 2026] By
MATT OTT
Grocery store chain Kroger said it will lay off 3,000 corporate
employees over the next three years as it ramps up its use of artificial
intelligence to streamline operations.
“Technology is reshaping what’s possible,” CEO Greg Foran wrote in a
memo to employees on Monday. “The way work gets done is changing across
every industry; we must adapt and take advantage of technology. We need
to adopt capabilities, reduce duplicative work and look closely at where
work is best fit to be done.”
Kroger last month outlined its AI strategy, meant “to improve the
customer experience, make work easier for associates and produce better
business outcomes.”
Cincinnati-based Kroger is the largest standalone U.S. supermarket chain
with 409,000 employees and more than 2,700 stores operating under
various brands, including Ralphs, King Soopers, Smith’s and Fred Meyer.
Kroger named former Walmart executive Foran CEO in February, 11 months
after the abrupt resignation of its previous CEO.
Foran has a reputation for being tech-savvy and detail-oriented. He led
Walmart’s U.S. division from 2014 to 2019, where he focused on cleaning
up stores, ensuring items were in stock and improving the fresh produce
selection. He also introduced online ordering and pickup, and
accelerated Walmart’s digital capabilities.
Walmart has become a larger challenge to Kroger and other traditional
grocers as Americans increasingly pick up their groceries along with
other general goods that Walmart sells.
Kroger has also felt pressure from fast-growing discount chains like
Aldi and Lidl and online behemoths like Amazon.
Kroger proposed a merger with Albertsons in 2022 as a way to better
compete with its rivals. But the Federal Trade Commission and two states
— Washington and Colorado — sued to block the merger in 2024, saying it
would raise prices and lower workers’ wages by eliminating competition.
Judges ultimately ruled that the merger should not proceed.
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A Kroger grocery store is seen in Monroe, Ohio. (AP Photo/Jeff
Dean, File)
 A day after their merger collapsed,
Albertsons filed a lawsuit against Kroger, seeking a $600 million
termination fee as well as billions of dollars in legal fees and
lost shareholder value.
Kroger said the claims were “baseless” and that Albertsons was not
entitled to the fee.
Albertsons is facing the same competitive headwinds as Kroger and
other grocery chains as customers turn to cheaper alternatives and
faster delivery from bigger retailers.
On Tuesday during its second-quarter earnings conference call with
investors, CEO Susan Morris alluded to further cost-cutting and
streamlining of the company's structure, including layoffs.
“We did some work last year and saw a substantial reduction in
headcount, but quite frankly, there’s more to be had," Morris said.
"And you’ll see us taking aggressive action there in the next 12 to
18 months as well.”
Kroger shares fell 2.2% in afternoon trading Tuesday, to $61.21.
Albertsons rose 2.8% but its shares are down more than 25% this
year.
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