Last week, Kroger announced that it would offer voluntary retirement buyouts to 2,000 of its non-store employees. This decision comes in support of the company’s “Customer 1st” strategy, which will help to reduce costs in areas not affecting the customer experience.
“Kroger would not be the successful company it is today without the incredible efforts of all of our associates. We believe a generous voluntary retirement offering is in line with our company values and recognizes the long careers many of our associates have had with Kroger,” says CEO Rodney McMullen. “Kroger is committed to our operating model of lowering costs to invest in the areas that matter most to our customers.”
Due to the program’s voluntary nature, savings and cost will depend on the number of associates who accept the offer. This initiative will be available until early March.
Any expenses related to the offer will be reflected in the company’s first quarter results for 2017. The announcement comes on the heels of weakening sales Kroger, which recently posted its lowest quarterly sales gain in 13 years.
