‘The way work gets done is changing across every industry’: Kroger cites AI efficiency push as it cuts 3,000 corporate jobs
Source: Fortune ·
Kroger says corporate cuts will help fund lower prices, but an analyst cautions that meaningful savings depend on where the money goes.
From the source
Kroger wants to make grocery shopping cheaper, and part of its plan is a smaller corporate workforce. The supermarket giant plans to eliminate about 3,000 corporate roles over the next three years as it expands its use of AI and overhauls operations. CEO Greg Foran says the restructuring will help fund lower prices and investment in frontline workers as Kroger competes with discount giants Walmart and Aldi. But shoppers may see only modest savings unless the company targets that investment toward the products where price matters most, retail analyst Neil Saunders told Fortune. “Technology is reshaping what’s possible,” Foran wrote in a memo to employees Monday, according to Business Insider, which reported the planned cuts. “The way work gets done is changing across every industry; we must adapt and take advantage of technology.” The cuts amount to roughly 37% of Kroger’s approximately 8,200 corporate employees, according to Business Insider. However, they’re a small share of its…