Kroger to cut 3,000 corporate jobs over three years under CEO Greg Foran

Check your career plans this week. Kroger just announced a corporate layoff plan that will cut 3,000 jobs over the next three years, according to Grocery Dive. That number represents about 37 percent of the entire corporate workforce at the nation's largest supermarket chain, based in Cincinnati, Ohio. CEO Greg Foran sent an internal memo on Monday detailing the cuts, which are designed to reduce complexity and squeeze costs out of a bloated corporate structure. Kroger is feeling intense pressure from competitors like Walmart, Costco and Amazon as rising prices weigh heavily on shoppers. The shock is not just about the size of the cuts but the three-year timeline, which leaves thousands of employees guessing about their futures. David Grossman, founder and CEO of The Grossman Group, warned that the strongest performers with options tend to leave first when left in limbo. Foran previously oversaw similar moves while serving as president of Walmart U.S., where he helped eliminate 7,000 back-office jobs in 2016. The supermarket chain is now adopting the Walmart playbook by getting tougher with supplier negotiations and cutting costs to chase market share. But the three-year horizon may backfire by driving away talent the company actually wants to keep around. Foran noted in his memo that Kroger will utilize new technology, which has already sparked unfounded employee fears about artificial intelligence taking over. If your business supplies goods to major grocery chains, expect tougher negotiations and a heavy push for lower costs in the months ahead. You cannot hack and slash your way to a better shopping experience without losing some institutional knowledge along the way.