Kroger plans to cut about 3,000 roles from its corporate workforce over the next three years to simplify operations.
In a memo to staff that the company shared with Business Insider, CEO Greg Foran said the corporate-level reductions will allow Kroger to invest in frontline workers.
“Our business is becoming leaner, more focused and more competitive,” he said.
The former Walmart US CEO took the helm of Kroger earlier this year and has set to work cutting prices and tightening operations over the past several months.
Foran also cited the impact of technology on the century-old company, saying that it merits a close look at where work can be done.
Read the memo from CEO Greg Foran
FROM: Desk of Greg Foran inboxTO: All companyRE: Changes to Our OrganizationWe shared important information on our all-company call today, and we’re following up to make sure everyone is aware of the changes ahead.As a company, we have made great progress on many fronts with our customers. We started reducing prices and improving our customer experience in stores and online, and we made investments in simplifying our associates’ lives through technology. 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.This transformation will also result in fewer roles across the company, which means we will reduce our corporate workforce across many functions, by approximately 3,000 roles over the next three years. These reductions will allow us to continue to invest in our frontline associates.These are difficult decisions, and we do not make them lightly. This is the right thing for the company’s long-term future. Here’s why:Simplifying our operations is critical. Simplifying means making faster decisions and deploying more resources where they matter most, so that we deliver lower prices and a better experience for our customers. Our company has more layers, more handoffs and more overhead than we need, so we are addressing this issue.Technology is reshaping what’s possible. The way work gets done is changing across every industry; we must adapt and take advantage of technology. We need to adopt capabilities, reduce duplicative work and look closely at where work is best fit to be done.We have the opportunity to make changes that will create broader roles and faster decision making. This lets us move vital resources closer to the customer to lower prices, invest in our associates and create a better shopping experience.When and how this will happenThese reductions will take place across multiple years. We will share updates when we can. We expect decisions about impacted roles to start being communicated in the coming months.Our values at workDuring these difficult moments, we will continue to be guided by Our Values. We will communicate directly with impacted associates as we make decisions, and we will not ask anyone to wait longer than necessary for clarity about their roles.We are grateful for each one of you. With the Kroger Leadership Team, we are committed to leading this company through this moment with transparency, integrity and respect.Greg
