OHIO: Kroger plans to cut roughly 3,000 corporate roles over the next three years, chief executive officer (CEO) Greg Foran told employees in a memo, seen by Reuters on Monday, as the grocer integrates artificial intelligence (AI) into its workflow.
Kroger should reduce duplicative work and adapt with technology, Foran wrote, adding that the job cuts would help the company cut prices and invest in in-store employees.
Foran took over as Kroger's CEO in February.
Companies have been rethinking corporate structures and cutting jobs as they increasingly turn to AI to streamline workflows and divert resources towards the technology, fuelling concerns over widespread disruption across sectors.
Last month, the company outlined its AI strategy, including the use of models to manage workflows and leverage customer data to power tools, such as its AI shopping assistant.
The grocery retailer had also lowered its annual identical sales target and said it is seeking to cut prices to better compete with rivals, such as Walmart and Aldi, as consumers grow more frugal under pressure from high gas prices.
Details on the job cuts, which would affect about 37 per cent of its 8,200 corporate employees, would be shared in the coming months, Foran said in the memo.
Bloomberg News first reported on the job cuts on Monday.
In June last year, the company cut about 1,000 corporate roles.
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