Target is eliminating approximately 1,800 corporate positions, including 1,000 layoffs, to streamline operations and revitalize its struggling business amidst declining sales and intense competition.
Target announced the elimination of about 1,800 corporate positions, consisting of 1,000 layoffs and 800 vacant job cuts, impacting approximately 8% of its global corporate workforce, primarily at its Minneapolis headquarters. Incoming CEO Michael Fiddelke stated the cuts are necessary to streamline decision-making, accelerate initiatives, and rebuild the retailer's flagging customer base, citing 'complexity' and 'too many layers' as impediments. This restructuring follows a period where Target has lost ground to competitors like Walmart and Amazon, experiencing flat or declining comparable sales in nine out of the past eleven quarters and a 21% drop in net income in its second quarter. Customer complaints have also pointed to messy stores and merchandise issues. Fiddelke's strategy includes reclaiming leadership in merchandise selection, improving the customer experience (stocked shelves, clean stores), and investing in technology. The job cuts will not affect store employees or supply chain workers; impacted corporate staff will receive pay and benefits until January 3, along with severance packages.
