Cincinnati, Ohio, U.S.A.-based retailer Kroger will lay off “fewer than 1,000” corporate associates, according to a memo obtained by Reuters, after laying off up to 200 corporate associates in February.
"In the past few months, we have all looked for ways to simplify the organization, shift resources closer to our customers, and focus on work that creates the most value," Kroger Interim CEO Ron Sargent said in the memo.
The new round of layoffs will affect corporate staff, not in-store associates or those working in manufacturing facilities or distribution centers.
Prior to the latest round of layoffs, Kroger said in July that it plans to close around 60 stores over the next 18 months.
The summer moves made by Kroger are the latest form of fallout from its failed merger with Albertsons, which fell through late last year.
"With the Kroger-Albertsons merger off the table, Kroger is moving to reset its cost base and streamline operations," CFRA Research Analyst Arun Sundaram told Reuters.
Kroger said it aims to reinvest savings into other areas, such as lowering prices, opening new locations, and creating store-level jobs, according to the memo.
Despite the layoffs and store closures, Kroger increased its annual sales growth forecast in June. The retailer said it would invest in lowering prices to attract budget-conscious consumers, as other retailers are doing across the U.S. and Canada, amid tariff-induced uncertainty.
In addition to offering value, the retailer aims to attract shoppers with a renewed focus on its fresh and perishable departments.
Kroger executives said at the Western Association of Food Chains (WAFC) convention in May that the company’s three priorities include a “back-to-basics focus on core grocery, deep investment in fresh-led store experiences, and empowering local divisions to drive customer-centric innovation, according to Progressive Grocer.
“Our ambition is to be the fresh destination,” Jayce Crooke, a grocery merchandiser at Kroger subsidiary Fred Meyer, said at WAFC. “The cold space is hard to come by, and we’ve invested significantly to expand it.”
In addition to produce and meat, “meal solutions, refrigerated sets, [and] ready-to-cook meals” are areas that the company is focusing on, Crooke added.
