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WHY KROGER LAYOFFS TARGET 84.51°: COULD IT BE A STEP BACKWARD?

WHY KROGER LAYOFFS TARGET 84.51°: COULD IT BE A STEP BACKWARD?

It’s August, and the wave of tech layoffs in 2025 shows no signs of slowing down. Companies across industries continue to trim their workforces amid economic uncertainty. Kroger, the Cincinnati-based grocery giant, is the latest to appear in headlines with its sweeping layoffs. The latest round of Kroger layoffs today is deemed to be a part of a broader restructuring following a failed $25 billion merger with Albertsons.

What our readers will want to know is whether Kroger is sacrificing its tech-driven subsidiary to cut costs, right when rivals like Amazon and Walmart are doubling down on data-driven retail? We find out.

It’s no secret that Kroger layoffs today could hobble its position again players like Amazon and Walmart. Back in February and March 2025, the giant cut around 200 position at hits its tech-savvy 84.51° subsidiary. The subsidiary looks after retail analytics, focusing on consumer insights, loyalty programs and data-driven marketing.

nterim CEO Ron Sargent outlined the reason behind Kroger layoffs today in an internal memo: “We are resetting our cost base to deliver for our customers and associates by lowering prices, opening new stores, and creating more jobs at the store level.”

Today’s layoffs at Kroger build on this notion. There’s a massive possibility that the Kroger layoffs in 2026 will affect corporate roles across technology and digital teams.

Interim CEO Ron Sargent outlined the rationale in an internal memo: “We are resetting our cost base to deliver for our customers and associates by lowering prices, opening new stores, and creating more jobs at the store level.”

These Kroger job cuts in 2025 are a part of a pivot following regulatory blocks on the Albertsons merger. While Kroger plans to reinvest in consumer-facing initiatives, the plan still doesn’t sit well with critics.

84.51° DATA ANALYTICS FACES MAJOR JOB CUTS

Named after Kroger’s headquarters coordinates (84° west longitude and 51° north latitude), 84.51° has played a significant role in transforming grocery shopping through data analytics. The unit leverages massive datasets from loyalty programs to offer personalized promotions and optimize supply chains.

Yet, the recent round of layoffs at Kroger feel like a step in the wrong direction. Kroger’s cuts could leave it lagging behind rivals like Walmart and Amazon which are investing heavily in AI and data tools.

According to analytics Mitch Burton, “Kroger should divest 84.51° or absorb the company into Kroger, and eliminate the 84.51° name,” highlighting skepticism about the unit’s future autonomy.

EMPLOYEE FRUSTRATION BOILS OVER KROGER LAYOFFS TODAY

Tech workers affected by these Kroger workforce reductions are voicing raw frustration online. An X user lamented, “Interesting that Kroger was more than happy to employ these folks to deliver record profits during COVID but then as soon as people caught on to the massive over-charging and shrinkflation…well, time to fire people. #shameful.”

A Kroger spokesperson confirmed the March 2025 cuts at 84.51°, stating, “As we continue delivering fresh, affordable food to more customers, we are making organizational changes to better position our business for the future.”

A sneak peek on social media portrays a grim picture. One anonymous employee shared on Reddit, “Textbook sign that Kroger layoffs were coming at some point this week. Good vibes to all of those who will be impacted and keep your heads up.”

Interim CEO Sargent added in his memo, “These changes will help us serve our customers better and more efficiently while supporting our associates and communities.”

WHAT’S IN STORE FOR E-COMMERCE AND INNOVATION?

With the advent of tech layoffs across sectors, Kroger’s layoffs raise several questions about preparedness for a data-centric future. These Kroger layoffs today could derail e-commerce and personalization efforts at a time when online grocery sales are booming. Amazon’s seamless integration of data for recommendations and Walmart’s AI-powered supply chains set a high bar. By gutting 84.51°, Kroger risks falling behind. Especially as it plans to close 60 underperforming stores over 18 months while opening new ones.

Will lower prices offset the human and strategic costs? Moreover, for tech-savvy shoppers, the clash between old-school retail and cutting-edge data tools is a story worth following.

Source – https://www.thehrdigest.com/why-kroger-layoffs-target-84-51-could-it-be-a-step-backward/

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