Kroger to lay off 3,000 employees as it leans into artificial intelligence

CINCINNATI (AP) - 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.