Kroger to lay off nearly 1,000 workers 

The Kroger Co. BB #:100073 plans to lay off about 1,000 employees, mostly in corporate positions rather than store level or distribution. 

According to Reuters, the layoffs were announced in a company memo August 26. 

“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,” said Kroger’s interim CEO Ron Sargent, in the memo seen by Reuters. 

The memo also said Kroger will reinvest savings into other areas, such as lowering prices, opening new locations, and creating store-level jobs. 

Earlier this summer, Kroger released plans to close about 60 stores over the next 18 months.

A few weeks ago, Kroger settled litigation with C&S Wholesale Grocers regarding termination fees from the failed merger of Kroger and Albertsons.

Albertsons also sued Kroger over termination fees, and that trial continues next month in a Delaware court where a judge will hear arguments about whether former CEO Rodney McMullen’s conduct, which led to his resignation, will be relevant to the case.

In a separate lawsuit this week, McMullen won a court order forbidding lawyers from asking him about the issue. That lawsuit is about a breach of contract dispute being brought by the singer Jewel and an events company hired by Kroger to host a wellness festival. 

The plaintiffs say McMullen is a potential witness in the case, but McMullen’s attorneys convinced the judge that the details of his departure would be “embarrassing” and not relevant to this lawsuit.