Kroger CEO Takes Aim at Layers, Handoffs and Overhead
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Kroger's new chief executive has looked at the grocer's corporate structure and found it overstocked. In an internal memo, Greg Foran told employees the company plans to cut about 3,000 corporate jobs over the next three years, with decisions on affected roles to be communicated starting in the coming months.
His diagnosis was short and blunt. Kroger, he wrote, has "more layers, more handoffs and more overhead than we need." The company plans to use technology to work more efficiently and to reduce duplicated work. Foran did not provide a specific timeline or say which departments will be affected.
From the back office to the shelf
The restructuring is tied directly to Kroger's competitive position. Foran, who became CEO in February 2026, has already set goals to lower prices and compete more effectively with Costco, Walmart and Amazon. Kroger's market share has slipped recently while value-focused rivals including Walmart, Costco and Aldi have gained ground.
According to the memo, cutting corporate overhead is meant to "move vital resources closer to the customer to lower prices." Foran also said the changes will let the company invest further in its associates, and described the business as becoming "leaner, more focused and more competitive."
A new team at the top
The job cuts follow a busy reshuffle of Kroger's leadership. In August the company named a former Walmart executive as its first e-commerce chief, and less than a month later it appointed another former Walmart leader as chief store operations officer. It has also added a new chief people officer and a chief data and AI officer. For a company trying to remove layers, it is at least consistent to begin by rebuilding the top floor.
The three-year horizon is worth noting for other managers. Rather than a single dramatic announcement, Kroger is signalling a gradual delayering, which gives teams time to absorb work that currently passes through extra handoffs.