Kroger Cuts 1,000 Corporate Jobs After Merger Collapse
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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听failed deal听with Albertsons Cos.听
The company is making structural changes to its teams across the U.S., interim CEO Ron Sargent said in a memo to staff on Aug. 26.
鈥淭hese decisions are never easy, but we know thoughtful, yet difficult, choices are necessary to set our organization up for continued success,鈥 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.
The company ranks No. 31 on the Transport Topics Top 100 list of the largest private carriers in North America.
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.
Sargent said Kroger is updating its business priorities while halting projects that weren鈥檛 helping its core retail business, without offering further details.
RELATED:听Kroger Plans to Close 60 US Stores to Improve Profit
Cincinnati-based Kroger is looking for a new path to growth under Sargent, who听stepped in听earlier this year after his predecessor, Rodney McMullen, abruptly exited. McMullen resigned following the board鈥檚 investigation into his personal conduct. The company hasn鈥檛 specified what it found. 听听
Supermarket operators, including Kroger, have听posted听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听blocked听by the US government.听
Executives said in June that it would close about 60 stores over the next 18 months. Separately,听 show that Kroger is eliminating about 750 store workers at four Fred Meyer locations in the Seattle area.
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