Kroger plans to cut about 3,000 roles from the company’s workforce over the next three years to streamline operations.
In a memo to staff the company shared with Business Insider, CEO Greg Foran said the company-level reductions will allow Kroger to invest in frontline workers.
“Our business is becoming leaner, more focused and more competitive,” he said.
The former CEO of Walmart US took the helm of Kroger earlier this year and has decided to cut prices and tighten operations in recent months.
Foran also mentioned the impact of technology on the century-old company, saying that it is necessary to look closely at where work can be done.
Read the memo from CEO Greg Foran
Of: Greg Foran’s inbox desk TO: All companies Re: Changes in Our Organization We’re sharing important information about the company’s entire phone today, and we’re working to make sure everyone is aware of the changes going forward. As a company, we have made great progress in many aspects with our customers. We began to lower prices and improve the customer experience in store and online, and made investments to simplify our partners’ lives through technology. Our business is becoming leaner, more focused and more competitive. We work to be more agile; more precise in our execution; and provide benefits to our customers, associates and shareholders. This transformation will also result in fewer roles within the company, meaning we will reduce the company’s workforce across multiple functions by approximately 3,000 roles over the next three years. These reductions will allow us to continue to invest in our frontline partners. This is a difficult decision, and we do not make it lightly. This is the right thing to do for the long-term future of the company. Here’s why:
- Simplifying our operations is essential. Simplifying means making faster decisions and using more resources where it matters most, so we can deliver lower prices and a better experience for our customers. Our company has more layers, more handoffs and more than we need, so we will solve this problem.
- Technology is reinventing what is possible. The way things work has changed in every industry; we must adapt and take advantage of technology. We need to leverage our capabilities, reduce duplicate work and look carefully at where the best work is to be done.
We have the opportunity to make changes that will create a broader role and make decisions faster. This allows us to move important resources closer to our customers to keep prices low, invest in our partners and create a better shopping experience. When and how this will happen The reduction will take place over several years. We will share updates when we can. We expect decisions on the affected roles to begin in the coming months. Our value is at work During this difficult time, we will continue to be guided by Our Values. We will communicate directly with affected associations when making decisions, and we will not ask anyone to wait longer than necessary for clarity on their role. We are thankful for each of you. With the Kroger Leadership Team, we are committed to leading this company with transparency, integrity and respect. Greg