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Investing.com -- Kroger Company (NYSE:KR) is laying off nearly 1,000 corporate employees as it restructures to reduce costs and refocus on core operations, a person familiar with the matter told Investing.com. The reductions will not impact store, manufacturing, or distribution center employees.
The layoffs follow a Bloomberg report earlier Tuesday, which cited a memo sent to staff by interim CEO Ron Sargent. The message outlined internal changes aimed at simplifying operations and reallocating resources where they are most effective.
“These decisions are never easy, but we know thoughtful, yet difficult, choices are necessary to set our organization up for continued success,” Sargent reportedly wrote in the memo. As part of the restructure, Kroger will discontinue projects that no longer align with its business priorities.
The company plans to reinvest the savings from these cuts into lowering prices, opening new stores, and adding more frontline staff. No financial figures were disclosed, and it’s unclear how much the company expects to save from the reorganization.
As of February, Kroger employed more than 409,000 people, the vast majority of whom work in stores. The company has not broken out how many workers fall under its corporate ranks.
Ron Sargent stepped in as interim CEO earlier this year following the departure of former chief Rodney McMullen. Kroger has not yet announced a timeline for naming a permanent replacement.
Shares traded down 1.6% on the day following the original report, and are now flat in after-hours trade.