Thread regarding Kroger Co. layoffs

why your company is failing

1) Current leadership appears to believe staffing levels expanded too aggressively during prior growth periods. Recent layoffs and return-to-office initiatives are being framed around AI and efficiency concerns, although many employees do not view the reductions as directly connected to AI adoption.

2) A broader organizational issue remains unresolved despite restructuring efforts. Cost reduction initiatives continue to focus primarily on headcount reduction, particularly among contractors and remote employees, because those areas are easier to target operationally.

3) The challenge with this approach is that it may not address underlying performance issues. During the pandemic, the company significantly expanded access to national talent pools through remote hiring. If productivity metrics such as revenue per employee are declining despite broader access to highly qualified technical talent, the more important question may be why the organization has struggled to convert that talent into stronger business outcomes. Cost cutting can improve short-term financial optics, but it does not necessarily resolve structural execution problems.

4) Recent operational and strategic missteps suggest that many issues originate at higher management layers rather than within technical teams themselves. Even after workforce reductions, competitive challenges are likely to remain if leadership and organizational alignment issues are not addressed. Managing distributed teams effectively requires different operating models, and return-to-office mandates alone may not solve coordination or productivity concerns.

5) A stricter return-to-office policy may also reduce access to specialized talent that competitors continue to recruit nationally. “But Amazon is doing RTO also” is a failure of leadership to understand their competitor - Amazon has headquarters in every tech capital
of America. RTO does not affect their access to this pool of talent. An alternative strategy could have been deeper investment in fully remote corporate operations alongside stronger management accountability, clearer execution priorities, and improved organizational communication. Employees generally respond more positively to leadership engagement that produces measurable business outcomes rather than highly polished internal presentations with limited operational impact.

6) Many employees joined the company because it was perceived as having a stable culture and experienced workforce. However, there appears to be growing disconnect between leadership and technical staff. Compensation structures and long-term incentives that may have retained prior generations of employees do not necessarily create the same loyalty among newer talent pools. Leadership may benefit from evaluating how effectively the organization supports, retains, and empowers the employees responsible for maintaining and building critical systems. After this abject failure of management, it will take years to earn any trust at all.


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Post ID: @OP+1krv7t7cp

5 replies (most recent on top)

Let me give you another thing to consider. It’s something undoubtedly on the mind of our new CEO, and it almost certainly is related to why the board selected him for the job.

In an increasingly eCommerce / health and welfare driven economy, who stands to win at the end of the day when the consumer is getting squeezed to death on all sides? Weekly, real wage growth has been dead in America since February 2020.

Walmart reports earnings this week. Large as fu-k discount retailers are taking market share faster than ever before, and the economy is increasingly becoming split between egregiously wealthy and the underclass that exists to cater to them (delivery drivers, hospitality, service workers, etc).

I argue that if we want to get serious about competing in this space, we need to zero the fu-k out of corporate office buildings in general and go to a zero / low or no office environment today. Then the company needs to threaten the state of Ohio every quarter with moving corporate HQ to six or seven P.O. Boxes in other states that offer tax incentives to the company. My vote is pick the states that have the largest demographic shift toward retirees (Florida for example).

Why? Often these states overlap with good corporate tax incentives while also capturing the non-discretionary market of healthcare spending / pharmacy, which is playing a large part in our competitor’s growth stories.

If you get rid of the bullsh-t office footprint and start playing to compete for real (both in the labor market and growing retail markets), then you’re likely to keep the fu---n wheels on the shopping cart for another two decades.

What we’re doing right now is we’re letting customers put the fu--ing shopping carts up on the curb and they’re sinking in the rain and getting rusty. Customers don’t give a fu-k about who they shop for anymore - they’re going to do it on the app and they don’t want to see your stupid face or the other unfortunate souls who have to go into the store because the shopper said “fu-k you, I’ll give you AAA batteries instead of AA batteries because we were out of the 12-pack despite there being a 4, 6, 24, 48, and 64 pack available there on the shelf.” These are the problems we need to solve - we don’t need to solve grandma waiting 2 more mins for a human lane when she is gonna show up whether the wait time is 2 mins or 4 mins anyway.

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Post ID: @bp+1krv7t7cp

@a8 this is the most sensible thing said on this forum

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Post ID: @b4+1krv7t7cp

@a8

Doesn’t matter about AI. Senior management has no technical vision for employing talent at any level. AI is a tool that labor will utilize to increase productivity. It does not matter if productivity goes toward the lack of vision and direction, which goes back to the failure of senior management still.

If anything, it means that you’re going to fall behind at a faster rate.

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Post ID: @ab+1krv7t7cp

Failing is a little dramatic.

Everyone is prob upset with leadership decisions, everyone is during a downturn, but Kroger is fine and will continue to be fine. The biggest mistake really was them fu--ing up the Albertsons merger.

They are making cuts in economic uncertainty along with everyone else, and trying to do a hard reset on the office culture. It happens, it su-ks, but it's normal and is seemingly nation wide not just Kroger

Add in the uncertainty around AI, and it isn't surprising they want to be lean now and see where the technology goes, having the budget to pivot where needed and to actually adopt AI as it matures since it's not cheap. Worst case scenario, AI doesn't boost the resources they keep enough to justify the cost and they go back to hiring for roles to supplement whos left. And that seems to be the same thing everyone is doing everywhere.

It's not just on where AI is now and how capable it is just this moment, but trying to project where it's going to go and having the capacity to pivot and bring in experts to help maximize it going forward.

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Post ID: @a8+1krv7t7cp

that reminds me....need to do my grocery shopping at Smiths today. Thanks!!!

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Post ID: @a4+1krv7t7cp

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