Kroger is Letting Go of Hundreds of Workers

According to a CNBC report citing a source familiar with the situation, Kroger is laying off hundreds of its employees.

The company, which owns Harris Teeter, Ralphs, and Fred Meyer, has 443,000 full-time and part-time employees.

Back in September, CEO Officer Rodney McMullen told analysts Kroger would not be “reconfirming” its expectation it would add $400 million in incremental operating profit as part of a restructuring plan it calls “Restock Kroger.”

A spokeswoman for Kroger told CNBC, “As part of ongoing talent management, many store operating divisions are evaluating middle management roles and team structures with an eye toward keeping resources close to the customer.”

She also said that the company’s store divisions are all “taking steps to ensure they have the right talent in the right store leadership positions.”

“Our financial results continue to be pressured by inefficient healthcare and pension costs, which some of our competitors do not face,” Chief Financial Officer Gary Millerchip said in September in the company’s second quarter earnings call.

Shares of Kroger are down nearly 9% YTD.

Disclaimer: We have no position in Kroger Co (NYSE: KR) and have not been compensated for this article.