Kroger Sets Layoffs, Sees Lawsuit by Albertsons Move Ahead

Kroger Co. (Cincinnati) plans to lay off 3000 corporate workers over the next three years. The story, initially reported by Reuters and followed up by such publications as Grocery Dive, said CEO Greg Foran told employees in an internal memo on Oct, 12 that Kroger has accumulated “more layers, more handoffs and more overhead than we need,” and the downsizing is designed to make decision-making faster and more agile. Several sources indicated that Kroger’s increasing use of AI is also a factor in the layoffs, which represent 37% of its 8200-person corporate workforce.

Meantime, the $8 billion lawsuit that Albertsons Cos. Inc. (Boise, Idaho) filed against Kroger following the collapse of their planned $25 billion merger is moving ahead. The suit, which Albertsons announced right after the deal fell through nearly two years ago, will now proceed in the Delaware Court of Chancery on Oct. 19, report a variety of sources, including The Cincinnati Enquirer. Albertsons claims Kroger failed to use its “best efforts” to get regulatory approval for the deal, while Kroger alleges Albertsons undermined the merger process, particularly after paying a $4 billion special dividend to its shareholders.