Target Cuts 1,800 Corporate Jobs to Streamline Operations

UPDATE: Target announced today it will eliminate approximately 1,800 corporate positions as part of a decisive plan to streamline operations and rebuild its struggling customer base. The move, affecting about 8% of its global corporate workforce, comes as the retailer faces fierce competition from industry giants like Amazon and Walmart.

A company spokesperson confirmed that 1,000 employees will receive layoff notifications next week, while approximately 800 vacant positions will also be closed. Most of the cuts will impact workers at Target’s Minneapolis headquarters, but crucially, store employees and those in sorting and distribution facilities will remain unaffected.

Chief Operating Officer Michael Fiddelke, who will assume the CEO role on February 1, 2024, communicated the layoffs in a message to staff today. “The complexity we’ve created over time has been holding us back,” Fiddelke, a veteran of 20 years at Target, stated. He emphasized the need for swift decisions to rejuvenate the company’s performance, which has seen flat or declining sales in nine of the last eleven quarters.

Target has been facing serious challenges, including a 1.9% drop in comparable sales and a 21% dip in net income reported last quarter. Customers have expressed dissatisfaction with the shopping experience, citing disorganized stores and product selection that fails to meet expectations.

Fiddelke outlined three urgent priorities aimed at improving Target’s market position: enhancing merchandise selection and presentation, ensuring store cleanliness and stock availability, and investing in technology. He described the layoffs as a “necessary step” toward building a more promising future for Target.

The announcement comes at a pivotal moment, as consumer spending continues to shift amid rising inflation. With nearly 2,000 stores across the U.S., Target must adapt quickly to regain its competitive edge and restore its reputation as a budget-friendly retailer.

As the situation develops, employees at the Minneapolis office have been advised to work from home next week, with further details expected on Tuesday. This restructuring is a critical response to the ongoing challenges facing the retail sector, and its impact will be closely monitored by industry analysts and stakeholders.

Stay tuned for updates as Target navigates this significant transition.