Kroger (KR.US) faces the largest layoffs in 143 years: cutting one-third of positions, more than 3,000 employees to be let go

According to Zhihu Finance APP, Kroger (KR.US) plans to cut more than one third of its corporate employees as the grocery retailer seeks to streamline operations and compete more effectively under the leadership of its new CEO, Gregg Foulk.

According to a leaked memo, the company will eliminate around 3,000 positions across departments over the next three years. Kroger has about 8,200 corporate employees, making this round of layoffs one of the largest in the company's 143-year history.

The layoffs are the latest in a series of recent changes at Kroger. Foulk, a former Walmart (WMT.US) executive, took over as CEO in February this year and has introduced significant measures amid slowing growth, increased competition, and ongoing inflation concerns.

In a memo to employees after a company-wide call on Monday, Foulk stated: "Simplifying means making decisions faster and allocating more resources to the most important areas." He added that the management levels and indirect costs at the United States’ largest traditional supermarket operator exceed what is actually needed.

He mentioned that as technology continues to evolve, Kroger should reduce repetitive work and make adjustments. This includes the rise of artificial intelligence, with the company increasingly using AI to improve workflow efficiency.

Kroger expects to begin announcing details about the affected positions in the coming months. Foulk wrote in the memo that the layoffs will help the company allocate more resources to price reductions, improving the shopping experience, and investing in frontline employees.

Foulk previously helped turn around Walmart's U.S. business in the mid-to-late 2010s, and is now implementing Kroger's most aggressive price reduction initiatives in years, while making in-store service friendlier and more efficient. The retailer, which operates Fred Meyer and Ralphs chain stores, is also taking a more aggressive stance in negotiations with suppliers.

The company laid off nearly 1,000 corporate employees last year to cut costs.