Kroger Set to Lay Off 1,000 Corporate Employees As Part of Restructuring And Minimizing Costs

The Kroger Co. (NYSE:KR) is one of the 10 Best Grocery Stocks to Buy According to Hedge Funds. The Kroger Co. (NYSE:KR) is set to lay off approximately 1,000 corporate employees, according to an internal memo cited by Bloomberg on August 26.

Kroger is laying off its corporate employees as part of restructuring and minimizing costs. The company wants to refocus on core operations, according to the memo. Kroger is recovering from a failed merger with Albertsons last year. To make the recovery smooth, the company is cutting costs and simplifying its business model. The reduction will not impact store, manufacturing, or distribution center employees.

The interim CEO, Ron Sargent, said that the internal changes are to simplify operations and reallocate 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 addressed in the memo.

Kroger will discontinue projects that no longer align with the new business strategies. Moreover, the company plans to reinvest the savings from this cost reduction strategy into lower pricing, opening new stores, and adding more frontline staff.

The Kroger Co. (NYSE:KR) is a food and drug retailer. The company operates multi-department stores, supermarkets, and fulfillment centers throughout the U.S.

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Disclosure: None. This article is originally published at Insider Monkey.