Kroger Announces Corporate Layoffs, Structural Changes

Kroger will lay off nearly 1,000 corporate employees as part of structural changes to its administrative teams across the U.S., multiple news outlets reported Tuesday. According to an internal memo obtained by the Los Angeles Times and other news outlets, the grocer is moving to trim costs and simplify its business model. The affected associates are all corporate employees who do not work in stores, manufacturing facilities or distribution centers, a company spokesperson told the Los Angeles Times on Tuesday.

The memo said Kroger, which also owns Harris Teeter and King Soopers, will prioritize reducing prices, opening new stores, and adding jobs at the store level.

Total Retail's Take: This decision follows Kroger's announcement in June that it would shutter 60 underperforming stores within the next 18 months. During that announcement — revealed during the company's first-quarter earnings call — Kroger said no layoffs were planned as a result of the closings.

The Cincinnati-based grocery chain has experienced a challenging few months: It was thwarted in its attempted merger with Albertsons for $25 billion — which has since escalated to a legal battle between the two companies — at the end of 2024, and in March, former chairman and CEO Rodney McMullen abruptly stepped down following a probe into his personal conduct.