It’s not just the tech industry that is being battered by mass layoffs this year. Grocery store giant The Kroger Co. (NYSE: KR) is cutting nearly 1,000 jobs from its corporate workforce. Here’s why, and how the company’s stock is reacting. What’s happened? Yesterday, Kroger interim CEO Ron Sargent said that the grocery chain would lay off hundreds of corporate workers, according to a memo seen by Fast Company. The layoffs will total fewer than 1,000 employees. Kroger currently employs around 409,000 workers, the majority of whom work in its 2,700 grocery stores, which include Kroger, Food4Less, CityMarket, and more. In the memo, Sargent revealed that, “In the past few months, we have all looked for ways to simplify the organization, shift resources closer to our customers, and focus on work that creates the most value.” However, the job cuts will not affect employees in the company’s stores, distribution centers, or manufacturing facilities. The memo went on to say that the savings from the corporate layoffs would be reinvested in the company and used to help fund new locations, create store-level jobs, and offer price reductions to customers. The layoffs and memo were reported earlier by Reuters. A Kroger spokesperson confirmed the job cuts when contacted by Fast Company. Layoffs follow store closures and failed merger The newly announced layoffs mark another low point for Kroger over the past 12 months. Within that timeframe, the company has incurred significant setbacks. The most dramatic of those is the failed merger between Kroger and Albertsons, which was valued at $25 billion. The merger would have seen the two grocery store chain giants join ranks, creating a new supermarket juggernaut. This would have allowed the newly formed company to compete against grocery offerings from arch-rivals Walmart and Amazon. However, in December, a federal judge blocked the merger on anti-competition fears. The merger was later abandoned entirely and has led to legal proceedings between the companies. Kroger has also announced this year the closure of 60 of its stores, which are expected to shutter by the end of 2026. Kroger said that the closures would provide it a “modest financial benefit.” Kroger investors shrug off the job cuts Despite the devastating effect that these layoffs will have on the impacted workers, the news seems to have had no impact on Kroger’s stock price. As of the time of this writing, in premarket trading, KR shares are currently trading flat at $69 apiece. That’s just one cent higher than their closing price of $68.99 yesterday. Year-to-date, Kroger shares are up over 12.8%. And over the last 12 months, KR shares have climbed more than 30%. This story has been updated with Kroger’s response to our inquiry.
It’s not just the tech industry that is being battered by mass layoffs this year. Grocery store giant The Kroger Co. (NYSE: KR) is cutting nearly 1,000 jobs from its corporate workforce. Here’s why, and how the company’s stock is reacting.
What’s happened?
Yesterday, Kroger interim CEO Ron Sargent said that the grocery chain would lay off hundreds of corporate workers, according to a memo seen by Fast Company.
The layoffs will total fewer than 1,000 employees. Kroger currently employs around 409,000 workers, the majority of whom work in its 2,700 grocery stores, which include Kroger, Food4Less, CityMarket, and more.
In the memo, Sargent revealed that, “In the past few months, we have all looked for ways to simplify the organization, shift resources closer to our customers, and focus on work that creates the most value.”
However, the job cuts will not affect employees in the company’s stores, distribution centers, or manufacturing facilities.
The memo went on to say that the savings from the corporate layoffs would be reinvested in the company and used to help fund new locations, create store-level jobs, and offer price reductions to customers.
The layoffs and memo were reported earlier by Reuters. A Kroger spokesperson confirmed the job cuts when contacted by Fast Company.
Layoffs follow store closures and failed merger
The newly announced layoffs mark another low point for Kroger over the past 12 months.
Within that timeframe, the company has incurred significant setbacks. The most dramatic of those is the failed merger between Kroger and Albertsons, which was valued at $25 billion.
The merger would have seen the two grocery store chain giants join ranks, creating a new supermarket juggernaut. This would have allowed the newly formed company to compete against grocery offerings from arch-rivals Walmart and Amazon.
However, in December, a federal judge blocked the merger on anti-competition fears. The merger was later abandoned entirely and has led to legal proceedings between the companies.
Kroger has also announced this year the closure of 60 of its stores, which are expected to shutter by the end of 2026. Kroger said that the closures would provide it a “modest financial benefit.”
Kroger investors shrug off the job cuts
Despite the devastating effect that these layoffs will have on the impacted workers, the news seems to have had no impact on Kroger’s stock price.
As of the time of this writing, in premarket trading, KR shares are currently trading flat at $69 apiece. That’s just one cent higher than their closing price of $68.99 yesterday.
Year-to-date, Kroger shares are up over 12.8%. And over the last 12 months, KR shares have climbed more than 30%.
This story has been updated with Kroger’s response to our inquiry.
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