Kroger, one of the nation’s largest supermarket chains, confirmed this week that it is cutting close to 1,000 jobs.
The layoffs, first reported by Reuters, will affect only corporate staff. Store employees, as well as workers in distribution centers and manufacturing facilities, will not be impacted by the cuts.
Interim CEO Ron Sargent explained the move in a memo to employees, saying the company has been evaluating ways to streamline its structure. “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,” Sargent wrote.
According to the memo, Kroger plans to reinvest the savings from these cuts into lowering prices, opening new locations, and creating more store-level jobs. Company leaders say the strategy is designed to strengthen the business while keeping customers at the center of decision-making.
The layoffs come as Kroger continues to reassess its operations nationwide. In June, the chain announced plans to shutter 60 underperforming stores over the next 18 months. At the time, Kroger said the closures would provide a “modest financial benefit” and stressed that the savings would be funneled back into enhancing the customer experience.
As of February, Kroger employed about 409,000 workers. Despite the corporate job losses, the company insists its long-term goal is to remain competitive in the grocery market while protecting frontline employees and continuing to expand opportunities at the store level.