Kroger has decided to cut roughly 3,000 corporate roles, 37% of jobs, over the next three years.
According to Reuters, CEO Greg Foran told staff in a memo that they are going to eliminate 37% of work force as the grocer integrates AI into its workflow.
Kroger should reduce duplicative work and adapt with technology, Foran wrote in the memo, adding that the job cuts would help the company cut prices and invest in in-store employees.
"Our business is becoming leaner, more focused and more competitive. We are working to be more agile; more precise in our execution; and deliver benefits to our customers, associates and our shareholders, "said CEO Great Foran in the memo.
"These reductions will allow us to continue to invest in our frontline associates," he added.
Foran called the decisions "difficult," not being made lightly, and the "right thing for the company's long-term future."
He said the company needs to simplify operations to deliver lower prices, and make better use of technology.
Companies have been rethinking corporate structures and cutting jobs as they increasingly turn to AI to streamline workflows and divert more resources toward the technology, fuelling concerns over widespread disruption across sectors.
Last month the company outlined the company's 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, opens new tab and Aldi as consumers grow more frugal under pressure from high gas prices.
Details on the job cuts, which would affect about 37% of its 8,200 corporate employees, would be shared in the coming months, Foran said in the memo.
