Target to Cut 1,800 Corporate Jobs, Aims to Streamline Operations

Target Corporation has announced plans to cut 1,800 corporate jobs as part of a broader effort to simplify its organizational structure and improve efficiency. The move aims to remove overlapping roles, reduce management layers, and streamline operations to enhance productivity and agility. This restructuring reflects Target’s focus on long-term growth, cost optimization, and adapting to the evolving retail landscape while ensuring better alignment across its corporate and store-level teams.

Roughly a thousand Target employees will be notified of layoffs next week, while another 800 unfilled corporate positions will be permanently removed, according to a company representative.

On Thursday, Target announced that around 1,800 corporate roles will be cut as part of a major restructuring plan aimed at simplifying decision-making and accelerating efforts to win back customers and strengthen the struggling retail brand. These reductions account for about 8% of Target’s global corporate staff, with most of the affected roles based at its Minneapolis headquarters, the spokesperson confirmed.

In a note to employees, Chief Operating Officer Michael Fiddelke, who will assume the CEO role on February 1, shared news of the downsizing and advised Minneapolis-based staff to work remotely next week. Fiddelke acknowledged that organizational complexity had slowed progress, writing, “Over time, too many layers and overlapping responsibilities have hindered our ability to move swiftly and bring ideas to life.”

The retailer, which operates nearly 2,000 stores across the U.S., has lost momentum to competitors like Walmart and Amazon as inflation-weary consumers spend less on non-essential goods. Many shoppers have voiced dissatisfaction with cluttered stores and uninspired product displays, straying from the stylish-yet-affordable image that once earned Target its affectionate nickname, “Tarzhay.”

When Fiddelke was named Target’s next CEO in August, he outlined three urgent priorities: reclaiming leadership in product curation and presentation, elevating the shopping experience through cleaner, better-stocked stores, and investing in technology to drive innovation.

He reiterated these goals in his latest message, calling the layoffs “a necessary step toward building the future of Target and unlocking the growth we all aspire to achieve.” He added that the restructuring would also require “new habits, clear priorities, and sharper execution” to reinforce Target’s strengths in design and retail leadership.

Over the past eleven quarters, Target has reported stagnant or declining comparable sales in nine of them. In the second quarter alone, same-store sales dropped by 1.9%, while net income plunged 21%. Store employees and workers in Target’s logistics and distribution centers will not be affected by these job cuts, according to the company. Corporate employees impacted by the restructuring will continue to receive pay and benefits through January 8, along with severance packages to support their transition, the spokesperson added.

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Source: NDTV‍