Target has announced it will lay off about 1,000 corporate employees and eliminate 800 open positions, a move affecting roughly 8% of its global corporate workforce. The Minneapolis-based retailer said the restructuring is designed to “set the course for our company to be stronger, faster, and better positioned” for the future, according to an internal email from incoming CEO Michael Fiddelke.
Fiddelke, currently Target’s chief operating officer, is set to succeed longtime CEO Brian Cornell next year. The layoffs come just weeks before the crucial holiday shopping season and mark another challenge for a company already grappling with declining sales and reputational strain.
Target’s sales have fallen for three consecutive quarters as consumers cut back on discretionary spending, particularly in home goods and apparel. The company has also faced backlash for scaling back its diversity, equity, and inclusion initiatives earlier this year — a reversal that drew criticism from longtime supporters and alienated some customers.
While the retailer emphasized that the job cuts are not a cost-cutting measure, Target said the reorganization is intended to streamline operations and improve decision-making. The company did not specify which departments would be affected, but most layoffs are expected to occur at corporate offices rather than in stores or distribution centers.
The economic slowdown, tighter consumer budgets, and intensified competition from Walmart, Amazon, and Costco have further pressured Target’s performance. Its stock has dropped nearly 30% this year, making it one of the worst performers in the S&P 500.
Despite the turbulence, Target said it remains focused on strengthening core categories such as food, beauty, and essentials — areas that have seen steadier demand. The company also plans to continue investing in online shopping and same-day delivery services, key growth drivers in recent years.
Source: CNN