Kroger announced Tuesday it will lay off fewer than 1,000 corporate employees across the United States. The Cincinnati-based grocery chain confirmed the cuts through a company spokesperson via email.
Interim CEO Ron Sargent described the layoffs as part of structural changes to administrative teams. He shared details in an internal company memo to staff members.
Sargent said the changes aim to simplify company operations and refocus on priorities. The goal is helping Kroger “run great stores” more effectively for customers.
This marks the third round of job cuts at Kroger within eight months. The company is working to recover from its failed merger attempt with Albertsons earlier this year.
Kroger plans to use savings from these layoffs for customer benefits and store improvements. The money will go toward lower prices, additional hours for store teams, and better real estate capabilities.
“We have looked for ways to simplify the organization and shift resources closer to customers,” Sargent wrote. He added that the company updated priorities and stopped projects that don’t benefit customers directly.
Many of the layoffs affected employees in Kroger’s Technology and Digital division. More than a dozen LinkedIn posts on Tuesday showed workers from this department losing their jobs.
One laid-off employee from the technology division expressed surprise at the decision. He noted that Kroger’s recent quarterly earnings showed strong results in online shopping and digital services.
The current layoffs did not include any frontline workers at stores, manufacturing facilities, or distribution centers. A company spokesperson confirmed that only corporate administrative roles were eliminated.
Kroger has been cutting costs after spending three years avoiding major reductions during merger talks. The company held back on significant changes while pursuing the Albertsons deal.
In June, Kroger announced plans to close approximately 60 underperforming stores by late 2026. The company also plans to complete 30 store improvement projects this year and speed up new store openings.
So far, Kroger has identified at least 39 stores for closure, with 18 locations already shut down. The store closures are part of the broader cost-cutting strategy across the company.
Earlier this year, Kroger confirmed job cuts at its retail analytics subsidiary called 84.51°. These March layoffs followed previous corporate role eliminations announced in February as part of restructuring efforts.
The grocery industry has faced pressure from rising costs and changing customer shopping habits. Many retailers are balancing cost cuts with investments in technology and customer service improvements.
Kroger operates approximately 2,700 stores under various brand names including Ralphs, King Soopers, and Fred Meyer. The company employs roughly 420,000 people across its retail and support operations.
The failed Albertsons merger would have created one of the largest grocery chains in America. Regulatory concerns and legal challenges ultimately blocked the $24.6 billion deal from moving forward.
Industry experts say grocery chains must adapt to increased competition from online retailers and discount stores. Companies are investing in delivery services, pickup options, and store technology to attract customers.
Kroger’s stock price has remained relatively stable despite the recent changes and challenges. Investors are watching how the company’s cost-cutting measures will affect long-term growth and profitability.
The layoffs come as many corporate employers across various industries are reducing workforce sizes. Economic uncertainty and changing business needs have led to job cuts at technology, retail, and financial companies.
Kroger said the changes will help the company focus on core business operations. Management believes simplifying corporate structure will improve decision-making and customer service at the store level.
The grocery chain continues to compete with major retailers like Walmart, Amazon, and regional grocery stores. Kroger’s strategy includes maintaining competitive prices while improving store experiences and expanding digital services.
Company leaders expect the restructuring to deliver cost savings that benefit both operations and customers. The focus remains on strengthening Kroger’s position in the competitive grocery market through targeted investments and operational improvements.
