Thread regarding Kroger Co. layoffs

haley petersen was fishing for info on this board too

REUTERS:

Kroger to layoff several store employees

Oct 2 (Reuters) - Kroger Co is looking to lay off several store employees holding middle management roles, amidst the supermarket chain’s push to improve delivery and in-store technology to attract shoppers.

“As part of ongoing talent management, many store operating divisions are evaluating middle management roles and team structures with an eye toward keeping resources close to the customer,” a Kroger spokesperson said in an e-mailed statement.

Over the past couple of years, Kroger has been expanding home delivery, curbside pickup and self-checkout services, apart from investing heavily in technology such as its recent deal with UK-based Ocado Group to speed up its delivery operations with robot-operated warehouses.

The spokesperson said store divisions operate independently but Kroger is taking steps to ensure it has the right talent in the right store leadership positions. (Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber)

Source: https://www.reuters.com/article/kroger-redundancies/kroger-to-layoff-several-store-employees-idUSL3N26N3M3

Here is CNBC Coverage:

https://www.cnbc.com/2019/10/02/kroger-to-lay-off-hundreds-amid-questions-about-its-turnaound-plan.html

Kroger is laying off hundreds of employees across the family of grocery stores it owns, a person familiar with the situation tells CNBC.

In September, CEO Officer Rodney McMullen told analysts Kroger would not be “reconfirming” its expectation it would add $400 million in incremental operating profit as part of a restructuring plan it calls “Restock Kroger.”

Kroger is not the first grocer to reconsider middle management as it looks to fight automated rivals, like Amazon.

Kroger is laying off hundreds of employees across the family of grocery stores it owns, a person familiar with the situation tells CNBC.

The unionized grocer, which also owns Harris Teeter, Ralphs, Fred Meyer, has 443,000 full-time and part-time employees.

A spokeswoman for Kroger told CNBC in a statement that “As part of ongoing talent management, many store operating divisions are evaluating middle management roles and team structures with an eye toward keeping resources close to the customer.”

She added that the company’s store divisions, which operate independently, are all “taking steps to ensure they have the right talent in the right store leadership positions.”

Shares of Kroger are down nearly 9% year-to-date, as it faces heightened competition from discount grocers Aldi and Lidl, as well as Walmart and Albertsons.

Meantime, its turnaround plan to invest in e-commerce and take on those challenges is in doubt. In September, CEO Rodney McMullen told analysts Kroger would not be “reconfirming” its expectation it would add $400 million in incremental operating profit as part of the three-year restructuring plan it calls “Restock Kroger.”

Kroger is not the first grocer to reconsider middle-management as it looks to restructure its business.

Walmart’s club store, Sam’s Club, in 2014 laid off 2,300 employees, including middle managers, as part of its turnaround. Last year, the retailer closed 63 stores and converted some of them to e-commerce facilities.