Former Air NZ boss Greg Foran slashes jobs at new role as head of US grocer Kroger

Kroger plans to cut more than one-third of its corporate headcount as the grocer seeks to simplify operations and compete more effectively under new chief executive Greg Foran.

The company will eliminate about 3000 roles across various functions over the next three years, according to a memo viewed by Bloomberg News. Kroger has about 8200 corporate employees, making the cuts among the biggest in the company’s 143-year history.

Layoffs are among the latest changes at Kroger as Foran – a former Walmart executive who started as the top boss in February – carries out big moves amid slowing growth, heightened competition and persistent inflation concerns.

“Simplifying means making faster decisions and deploying more resources where they matter most,” Foran wrote in the memo to staff after a companywide call on Monday, adding that the largest traditional US supermarket operator has more layers and overhead than needed.

Kroger should reduce duplicative work and adapt as technology evolves, he noted. This includes the rise of artificial intelligence, which the company is increasingly using to make its workflow more efficient.

Cincinnati-based Kroger expects to shdetails about affected roles in the coming months. The reductions will help the company put more resources towards cutting prices, improving shopping experience and investing in frontline employees, Foran wrote in the memo.

Foran, who helped turn around Walmart’s US business in the mid- to late 2010s, is implementing Kroger’s biggest price cuts in years, while making service in stores friendlier and faster. The operator of Fred Meyer and Ralphs chains is also taking a more aggressive approach towards supplier negotiations.

The company laid off nearly 1000 corporate employees last year to cut costs.

• Air NZ chief executive Greg Foran resigns