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Mariano’s parent will eliminate 3,000 corporate positions as Kroger expands AI use
Kroger says it will cut 3,000 corporate jobs over three years while adopting more artificial-intelligence tools. The Cincinnati-based grocer has not specified how many positions, if any, will be in the Chicago area, where it operates Mariano’s stores.
Kroger, the parent company of Chicago-area grocery chain Mariano’s, plans to eliminate 3,000 corporate jobs over the next three years as it increases its use of artificial intelligence and looks to streamline operations.
CEO Greg Foran outlined the cuts in a Monday memo to employees, saying technology is changing how work is done and that the company needs to adopt new capabilities and reduce overlapping work. Kroger has not said how many jobs will be eliminated in the Chicago area or identified which teams will be affected.
The company described its AI strategy last month, saying it aims to improve customer experiences, make work easier for employees and strengthen business results. Kroger operates more than 2,700 stores under brands including Mariano’s, Ralphs, King Soopers and Fred Meyer, and employs about 409,000 people.
Foran became CEO in February, after previously leading Walmart’s U.S. division from 2014 to 2019. His appointment came 11 months after Kroger’s previous chief executive resigned abruptly. Walmart’s grocery business has become a formidable competitor as shoppers increasingly combine grocery trips with purchases of other goods, while Kroger also faces pressure from discount chains such as Aldi and Lidl and online retailers such as Amazon.
Kroger has pursued cost savings amid those competitive pressures. Its proposed 2022 merger with Albertsons was blocked after the Federal Trade Commission and Washington and Colorado challenged the deal, arguing it could reduce competition and harm shoppers and workers. Albertsons later sued Kroger, seeking a termination fee and other damages; Kroger has called the claims baseless.
The planned job cuts come as other major grocers also discuss restructuring. Albertsons CEO Susan Morris told investors Tuesday that the company would take further steps to reduce staffing and streamline its structure, saying more reductions were possible over the next 12 to 18 months.
Kroger shares fell 2.2% to $61.21 in afternoon trading Tuesday, while Albertsons shares rose 2.8% that day but remained down more than 25% for the year.