Kroger to cut 3,000 corporate jobs over next 3 years

Check your supply chain if you deal with Kroger. The grocery giant just announced plans to slash 3,000 corporate jobs over the next three years. CEO Greg Foran sent a memo to staff admitting the company has too many layers, too many handoffs, and too much overhead. This is a massive shakeup for the company that keeps shelves stocked across the country. Kroger is shrinking its footprint by consolidating 11 divisions into just four regions. At the same time, their president and Chief Financial Officer Sharon McCollam is retiring later this year. The reason is simple and brutal. Data from Numerator shows that while Costco, Amazon, and Walmart are grabbing more grocery sales, traditional supermarket chains are losing ground. Kroger is trying to stop the bleeding by cutting costs and simplifying their messy corporate structure. If you are a vendor or a supplier, expect slower payments or tougher contract talks as they scramble to get lean. When a company this big decides to trim the fat, it usually means someone else is going to pick up the tab. If you sell to them, keep a close eye on your accounts receivable this quarter. It seems the only thing growing faster than their competition is their list of job cuts.