Kroger Plans 1,000 Corporate Layoffs, 60 Store Closures by 2026

Kroger, one of the largest grocery chains in the U.S., announced plans to lay off nearly 1,000 corporate employees as part of a broader restructuring effort following its decision to close about 60 underperforming stores by the end of 2026. These layoffs do not affect workers in stores, manufacturing, or distribution centers, and employees at closing stores will be offered positions at nearby locations. Interim CEO Ron Sargent emphasized that the layoffs are aimed at simplifying the organization, shifting resources closer to customers, and focusing on value-creating work. Despite these cuts and a slight decline in sales and net income in the first quarter, Kroger plans to reinvest the savings into lowering prices, opening around 30 new stores, renovating existing locations, and other capital projects totaling between $3.6 billion and $3.8 billion. The restructuring follows a failed $25 billion merger with Albertsons and a series of strategic changes under new leadership after Rodney McMullen's departure. Kroger remains optimistic about its future, focusing on streamlining priorities and improving customer experience amid these changes.