- Kroger is laying off hundreds of employees across the entire family of grocery stores it owns, a person familiar with the situation tells CNBC.
- In September, CEO Rodney McMullen told analysts Kroger would not "confirm" the expectation it will add $ 400 million in incremental operating profit as part of a restructuring plan it calls "Restock Kroger."
- Kroger is not the first merchant to rethink middle management because it appears to be fighting automated rivals, such as 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 merchant, who also owns Harris Teeter, Ralphs, Fred Meyer, has 443,000 full-time and part-time employees.
A Kroger spokeswoman told CNBC in a statement that "As part of ongoing talent management, many store divisions are evaluating middle management roles and team structures with an eye to 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 management positions."
Kroger shares are down nearly 9% so far this year, as it faces increased competition from discount retailers Aldi and Lidl, as well as Walmart and Albertso ns.
Meanwhile, there is the turnaround plan for investing in e-commerce and taking on these challenges. In September, CEO Rodney McMullen said analysts Kroger would not "confirm" the expectation that it would add $ 400 million in incremental operating income as part of the three-year restructuring plan it calls "Restock Kroger."
Kroger is not the first merchant to rethink middle management when it appears to restructure its business.
Walmart's club shop, Sam's Club, laid off 2,300 employees in 2014, including middle managers, as part of the turnaround. Last year, the retailer closed 63 stores and converted some of them into e-commerce facilities.