Kroger is laying off fewer than 1,000 corporate associates: Reuters

Kroger on Tuesday announced laying off corporate associates, as detailed in a memo, with a source familiar with the reduction stating that fewer than 1,000 employees will be impacted.

The source added that staff working in stores, manufacturing facilities or distribution centers were not laid off.

The company, as of February, employed over 409,000 staff, with most of them working in stores. The grocer had said in June it would close about 60 underperforming stores over the next 18 months.

“In the past few months, we have all looked for ways to simplify the organization, shift resources closer to our customers, and focus on work that creates the most value,” saidKroger’s interim CEO Ron Sargent, in a memo seen by Reuters.

Krogerwill reinvest savings into other areas, such as lowering prices, opening new locations and creating store-level jobs, the memo added.

Bloomberg News had reported layoffs of nearly 1,000 corporate workers earlier on Tuesday, citing the memo from Sargent.

“With theKroger-Albertsons merger off the table,Krogeris moving to reset its cost base and streamline operations,” said Arun Sundaram, analyst at CFRA Research.

“Many decisions were put on hold during the merger process, so it makes sense that we’re seeing more major business decisions in recent months,” he added.

Krogerand Albertsons had proposed a $25 billion merger, which wasblockedby a U.S. judge in December, leading to alegal battlebetween the companies.

Krogerhadbumped upits annual sales growth forecast after posting upbeat first-quarter results in June and said it would invest in lowering prices to attract budget-conscious consumers amid tariff-induced uncertainty.