Kroger Co. Layoffs and Restructuring
Kroger Co. is laying off nearly 1,000 corporate employees as the grocery-store operator moves to trim costs and simplify its business following its failed deal with Albertsons Cos.
The company is making structural changes to its teams across the U.S., interim CEO Ron Sargent said in a memo to staff on Tuesday.
“These decisions are never easy, but we know thoughtful, yet difficult, choices are necessary to set our organization up for continued success,” Sargent said in the memo. He added that Kroger will reinvest savings into other areas, such as lowering prices, opening new locations and creating store-level jobs.
Background and Context
Kroger employed over 409,000 staff as of February, according to a filing, with most of them working in stores. The company declined to disclose how many corporate workers it employs.
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Reasons for Restructuring
Sargent said Kroger is updating its business priorities while halting projects that weren’t helping its core retail business, without offering further details.
Cincinnati-based Kroger is looking for a new path to growth under Sargent, who stepped in earlier this year after his predecessor, Rodney McMullen, abruptly exited. McMullen resigned following the board’s investigation into his personal conduct. The company hasn’t specified what it found.
Impact on the Supermarket Industry
Supermarket operators, including Kroger, have posted healthy sales in recent quarters as cash-strapped consumers prioritize groceries and essential goods while trimming discretionary purchases. Kroger is looking to slim down, however, after its proposed acquisition of rival Albertsons was blocked by the U.S. government.
Executives said in June that it would close about 60 stores over the next 18 months. Separately, filings this week in Washington state show that Kroger is eliminating about 750 store workers at four Fred Meyer locations in the Seattle area.
What’s Next for Kroger
As Kroger continues to navigate the changing retail landscape, it’s likely that the company will face further challenges and opportunities. With a new leadership team and a renewed focus on core business priorities, Kroger is poised to adapt to the evolving needs of its customers and the market.
Conclusion
In conclusion, Kroger Co.’s decision to lay off nearly 1,000 corporate employees and restructure its business is a significant step towards simplifying its operations and achieving long-term success. As the company moves forward, it’s essential to keep a close eye on the supermarket industry and the impact of Kroger’s changes on its customers, employees, and the broader market.
FAQs
Q: How many employees is Kroger laying off?
A: Kroger is laying off nearly 1,000 corporate employees.
Q: Why is Kroger restructuring its business?
A: Kroger is restructuring its business to simplify its operations, trim costs, and focus on core business priorities.
Q: What will happen to the savings from the layoffs?
A: Kroger will reinvest the savings into other areas, such as lowering prices, opening new locations, and creating store-level jobs.
Q: How many stores will Kroger close?
A: Kroger will close about 60 stores over the next 18 months.
Q: How many store workers will be eliminated at Fred Meyer locations?
A: About 750 store workers will be eliminated at four Fred Meyer locations in the Seattle area.
