Nearly 1,000 corporate Kroger employees are losing their jobs after the company previously announced its intentions not to lay off employees.
The layoffs come after the grocer decided to shutter more than 60 underperforming stores by the end of 2026.
Kroger initiated the closures as a way to cut costs following its failed $25 billion merger with Albertsons.
‘These decisions are never easy, but we understand that making thoughtful, yet challenging decisions is crucial for positioning our organization for ongoing success,’ stated interim CEO Ron Sargent.
He added Kroger will continue to ‘grow and reinvest’ those savings in areas that drive its strategy and directly benefits customers.
Sargent, who assumed the role after Rodney McMullen’s departure due to ‘personal conduct’, announced that the company is revising its priorities and stopping projects that were not benefiting the business.
As of February, over 409,000 workers were employed by Kroger, with most of them working in stores.
Those working at stores locations which are due to close will be offered positions at nearby stores.
Kroger is laying off nearly 1,000 employees despite announcing its plans not to lay off workers
Kroger is planning to close more than 60 underperforming stores across the US by the end of 2026
Kroger, which runs close to 2,800 stores across the nation, experienced a decline in sales during the first quarter of this year, reducing to $45.1 billion from the $45.3 billion it achieved in the same timeframe the prior year.
The company’s net income also decreased to $866 million from $962 million. While these decreases posed minor setbacks for the chain, Kroger remained satisfied with the outcomes.
‘Kroger delivered solid first quarter results, with strong sales led by pharmacy, eCommerce and fresh,’ said Sargent.
‘We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience.’
Despite the store closures, Kroger is planning to allocate between $3.6 billion and $3.8 billion this year towards capital projects, which include constructing new stores and undertaking renovations.
The company is planning to open around 30 new stores by the end of 2025, focusing on markets with stronger performance and growth potential.
‘New store openings are the biggest driver of market share gains, and we’re continuing to look at that,’ Sargent said.
‘And I think we’ll be investing to accelerate store openings going forward.’
Ron Sargent took on the role of the company’s interim CEO in March 2025
Kroger operates nearly 2,800 stores nationwide
Kroger has already implemented several changes aiming to better the company — including shutting down Kroger Ship.
The e-commerce platform, which failed to compete with companies like Walmart and Amazon, only started operating in 2018.
The chain made headlines last month after giving its customers access to Weekly Digital Deals through in-store flyers.
Available in nearly every store, the flyers give its loyal shoppers to opportunity to download all the deals onto their mobile devices.
Shoppers recently caused a frenzy on social media after they noticed an increase in electronic shelf labels at Kroger.
The chain confirmed to Daily Mail that they are not used for dynamic pricing.
