Kroger announced Monday that it will cut roughly 3,000 corporate jobs over the next three years as it ramps up use of artificial intelligence to streamline operations.

In a memo to employees, CEO Greg Foran wrote that 'technology is reshaping what's possible' and that the company must 'adopt capabilities, reduce duplicative work and look closely at where work is best fit to be done.'

The announcement was reported by ABC News carrying the AP's report and by Grocery Dive, which obtained the internal memo. Kroger is the largest standalone U.S. supermarket chain, with 409,000 employees and more than 2,700 stores under brands including Ralphs, King Soopers, Smith's and Fred Meyer.

The move is notable both for its scale — 3,000 corporate roles at a single grocer — and for its framing: Foran is tying layoffs explicitly to an AI strategy Kroger outlined last month, which it said was meant to improve the customer experience, make work easier for associates and produce better business outcomes.

According to Grocery Dive, Foran wrote in the memo that Kroger has 'more layers, more handoffs and more overhead than we need,' and said decisions about impacted roles will be communicated starting in the coming months.

The cuts land as AI-driven job displacement faces growing political and labor scrutiny nationwide.

Grocery Dive reports that Foran wrote the company has 'more layers, more handoffs and more overhead than we need,' and that the effort builds on goals he outlined earlier this year to lower prices and compete with giants like Costco, Walmart and Amazon.

According to Grocery Dive, recent data shows Kroger's market share declined while value-focused competitors like Walmart, Costco and Aldi increased their shares, and Kroger told Bloomberg in May it planned price cuts across its stores — the same day Walmart announced expanded price cuts on more than 7,000 items.

Kroger shares fell 1.6% in Tuesday morning trading to $61.66, per ABC News.

The layoffs underscore how AI is becoming a justification for restructuring across the real economy, not just in tech.

ABC News notes Foran, who led Walmart's U.S. division from 2014 to 2019, has a reputation for being tech-savvy and detail-oriented, having introduced online ordering and pickup there and accelerated Walmart's digital capabilities.

Since becoming Kroger CEO in February — 11 months after his predecessor's abrupt resignation — he has remade the C-suite, per Grocery Dive, naming former Walmart executive Nate Faust as the company's first e-commerce chief and appointing a new chief data and AI officer.

The cuts also come as labor pushback intensifies: in New York City, union leaders testified Monday at the City Council's first citywide AI hearing, where the Council unveiled 10 proposed bills on AI safety, privacy and accountability, according to WNY Labor Today.

Kroger has not specified a timeline for the layoffs or said which departments will be affected, and Foran said the cuts will allow the grocer to further invest in its associates, according to Grocery Dive.

The company also faces a separate legal reckoning: Grocery Dive reports that Albertsons is seeking at least $8 billion in damages from Kroger over their failed 2022 merger — which judges blocked in 2024 after the FTC and two states sued — with the trial slated to start October 19 in Delaware.

ABC News reports Albertsons' suit seeks a $600 million termination fee plus billions in legal fees and lost shareholder value, claims Kroger has called 'baseless.' How the AI restructuring and the Albertsons trial unfold will shape whether Foran's leaner-Kroger bet pays off.