Kroger Co. (KR) is laying off nearly 1,000 corporate employees to reduce costs and streamline its business, according to a Bloomberg report. The move follows the collapse of its proposed $25 billion merger with Albertsons (ACI), which was blocked in late 2024 due to antitrust concerns.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Despite the layoffs, Kroger plans to reinvest the savings into strategic priorities, including lowering prices, expanding its store footprint, and creating new jobs at the retail level.
In addition to the layoffs, Kroger previously announced plans to close 60 stores nationwide over the next 18 months, aiming to consolidate operations and improve profitability.
Kroger Restructures Operations Under Interim CEO
In a memo to staff on Tuesday, interim CEO Ron Sargent stated that the company is undergoing “structural changes” to its teams nationwide. “These decisions are never easy, but we know thoughtful, yet difficult, choices are necessary to set our organization up for continued success,” Sargent wrote.
Sargent indicated that Kroger is reprioritizing its business, halting projects that do not directly support its core retail operations.
This corporate restructuring comes as the company seeks a new growth strategy under Sargent, who took over earlier this year following the abrupt resignation of his predecessor, Rodney McMullen.
Is Kroger Stock a Good Buy Now?
Turning to Wall Street, KR stock has a Moderate Buy consensus rating based on nine Buys and nine Holds assigned in the last three months. At $76.71, the average Kroger stock price target implies 11.19% upside potential.
