Cincinnati-based Kroger intends to get rid of around 3,000 corporate jobs over the coming three years, the company has confirmed. The cuts were announced Monday in a meeting and memo to staff.
"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.
The cuts are slated to begin rolling out in the next few months.
In July, Kroger announced it had entered a deal to buy supermarket chain Giant Eagle for $1.65 billion.
Pittsburgh-based Giant Eagle, Inc. operates more than 200 supermarkets and standalone pharmacies across western Pennsylvania, north central Ohio, northern West Virginia, Maryland and Indiana. Its annual sales are estimated at around $9 billion.
According to a release, the purchase price of $1.65 billion includes $1.25 billion in cash consideration, and Kroger will assume around $400 million in outstanding liabilities. The transaction is expected to close in 2027, subject to regulatory clearance.
Meanwhile, the Wall Street Journal reported Monday that Albertsons wants Kroger to pay out $8 million for the failed merger bid two years ago.
"Albertsons is accusing Kroger leaders of making 'lowball offers' to federal regulators to largely keep the most-profitable stores in the combined company, and hive off the weaker-performing ones, according to a court filing unsealed Monday," the newspaper reports. "The filing is part of Albertsons’ lawsuit against Kroger in Delaware Chancery Court following the companies’ failed deal. A bench trial is slated to begin Oct. 19 and the proceeding is expected to last about two weeks."
Kroger operates more than 2,700 supermarket and multi-department stores under 20 brands, including Ralphs, Harris Teeter, Fred Meyer and King Soopers, across 35 states and the District of Columbia.
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