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Kroger Cuts 1,000 Corporate Jobs Amid Restructuring Push

1 min read
8/26/2025

In a sign of deeper restructuring across the U.S. retail sector, Kroger—the nation’s largest traditional grocery chain—is laying off 1,000 corporate employees as it pivots toward a leaner, more store-focused business model. The move comes just months after the collapse of its proposed mega-merger with Albertsons and amid a broader reset in strategy under new interim leadership.

Kroger Cuts 1,000 Corporate Jobs Amid Restructuring Push

Kroger is laying off nearly 1,000 corporate employees as part of a sweeping cost-cutting effort to streamline operations and refocus on its core grocery business.

The move follows a failed $24.6 billion merger with Albertsons, which was blocked by U.S. regulators. In a memo to staff, interim CEO Ron Sargent said the layoffs are part of a broader structural overhaul aimed at simplifying how the company works and preparing for long-term growth.

“These decisions are never easy,” Sargent acknowledged, “but they’re necessary to position Kroger for continued success.”

The company says it will use the savings from the layoffs to:

  • Lower grocery prices
  • Open new store locations
  • Create more store-level jobs

While Kroger has over 409,000 employees—mostly in stores—it has not disclosed how many corporate staff are affected proportionally.

This restructuring also includes a pause on several internal projects that “aren’t supporting our core retail mission,” though the company hasn’t shared specifics.

Sargent, who took over after the abrupt departure of longtime CEO Rodney McMullen earlier this year, is now tasked with charting a new path forward. McMullen resigned following a board investigation into his personal conduct, though Kroger hasn’t released details of that probe.

Despite solid sales as inflation-weary shoppers focus on essentials like groceries, Kroger is tightening its belt. Back in June, the company announced it would close about 60 stores over the next 18 months. And just this week, filings in Washington state revealed 750 job cuts at four Fred Meyer stores in the Seattle area—another sign of deeper operational changes.

As competition intensifies and economic uncertainty lingers, Kroger’s restructuring marks a clear pivot: fewer corporate desks, more checkout lanes.

Source: Kroger Lays Off 1,000 Corporate Workers in Cost-Cutting Move

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