CINCINNATI, Ohio (AP) — Kroger plans to eliminate 3,000 corporate positions over the next three years as the grocery chain increases its use of artificial intelligence to streamline operations.

According to The Associated Press, CEO Greg Foran announced the planned layoffs in a memo to employees Monday, citing changes in technology and the need to improve efficiency across the company.

The announcement follows Kroger’s unveiling of a new artificial intelligence strategy last month aimed at improving customer experiences, simplifying employee responsibilities and strengthening business performance.

Cincinnati-based Kroger is the largest standalone supermarket chain in the United States, employing approximately 409,000 people across more than 2,700 stores. Its brands include Ralphs, King Soopers, Smith’s and Fred Meyer.

Foran became Kroger’s CEO in February after previously leading Walmart’s U.S. operations from 2014 to 2019. During his time at Walmart, he oversaw improvements to store operations and expanded the company’s online ordering and pickup services.

The layoffs come as Kroger faces increasing competition from Walmart, discount grocery chains Aldi and Lidl, and online retailer Amazon.

Kroger previously attempted to strengthen its market position through a proposed merger with Albertsons in 2022. However, the $24.6 billion deal was blocked in 2024 following legal challenges from the Federal Trade Commission and state officials who argued the merger would reduce competition, potentially raising grocery prices and lowering workers’ wages.

Following the collapse of the merger, Albertsons sued Kroger, seeking a $600 million termination fee and additional damages. Kroger has disputed those claims.

Kroger shares fell 1.6% in Tuesday morning trading, reaching $61.66.

The company has not detailed which corporate departments will be most affected by the planned job reductions.