Target Announces Urgent Layoffs of 1,800 Corporate Jobs

UPDATE: Target just announced it will eliminate approximately 1,800 corporate positions as part of a strategy to streamline operations and revitalize its struggling customer base. The decision, confirmed today, will see around 1,000 employees receiving layoff notices as early as next week, with an additional 800 vacant positions being closed.

This major workforce reduction represents about 8% of Target’s global corporate workforce, with the majority of affected employees located at the company’s Minneapolis headquarters. Notably, the layoffs will not impact store employees or those working in Target’s sorting, distribution, and supply chain facilities.

Michael Fiddelke, the current Chief Operating Officer and incoming CEO effective February 1, 2024, addressed employees in a memo earlier today, emphasizing the need for change. “The complexity we’ve created over time has been holding us back,” he wrote. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”

This restructuring comes as Target faces significant challenges, including a 1.9% decline in comparable sales reported for the second quarter, alongside a 21% drop in net income. The retailer has struggled to compete with giants like Amazon and Walmart, as inflation has led consumers to tighten their discretionary spending.

Fiddelke outlined three urgent priorities for the company: reclaiming its position in merchandise selection and display, enhancing the in-store customer experience, and investing in technology. He reiterated these goals in his memo, stating that the layoffs are a “necessary step in building the future of Target and enabling the progress and growth we all want to see.”

Customers have expressed dissatisfaction with the shopping experience, reporting disorganized stores and a lack of appealing merchandise, which has contributed to the brand’s declining reputation.

As Target navigates these significant changes, employees in the Minneapolis offices have been instructed to work from home next week. As the situation develops, further details will be released on Tuesday.

Stay tuned for more updates on this urgent story, as Target works to redefine its strategy and improve its standing in the retail market.