Kroger's Foran plans to cut about 3,000 corporate roles over three years

The memo gives two reasons for the cuts, and they imply different work. The first is structure. Foran wrote that "Our company has more layers, more handoffs and more overhead than we need, so we are addressing this issue" ^[4]. In our view, removing layers is a decision management can schedule for itself. Technology is the second reason, and it is harder to schedule: the memo says Kroger must "adopt capabilities, reduce duplicative work and look closely at where work is best fit to be done" ^[5].

The memo says the changes will "create broader roles and faster decision making" ^[11]. In our view, the staff who remain should expect wider jobs. Spread evenly, 3,000 roles over three years is about 1,000 a year ^[9]. The memo says only that the reductions will take place across multiple years, so the pace could be uneven ^[6].

The tradeoff Kroger has chosen is corporate capacity now in exchange for more money at the store and on the price tag ^[10][11]. Foran said "Our business is becoming leaner, more focused and more competitive" ^[2]. The first notices on affected roles are due in the coming months ^[6], and they will show which of the "many functions" named in the memo carry the early cost ^[7]. Those notices set up next quarter's question, which is whether the price cuts already under way ^[3] are matched by savings that arrive on a known schedule.