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Target Cuts 1,800 Corporate Roles in Restructuring Push
23 Oct
Summary
- Target to eliminate 1,800 corporate roles, including 1,000 layoffs
- Incoming CEO Fiddelke cites complexity and slow decision-making
- Layoffs part of "enterprise acceleration" to simplify operations
In a major restructuring move, Target has announced plans to eliminate 1,800 corporate roles, including 1,000 layoffs and the elimination of 800 open positions. The cuts, revealed in a memo from incoming CEO Michael Fiddelke, mark the first significant round of layoffs at the Minneapolis-based retailer in over a decade.
Fiddelke, who is set to succeed longtime CEO Brian Cornell on February 1, 2025, cited the company's growing complexity and slow decision-making as the key drivers behind the layoffs. He described the cuts as a "necessary step" in building Target's future and enabling the progress and growth the company seeks.
The layoffs, which will impact around 8% of Target's global headquarters team, are part of the retailer's "enterprise acceleration" initiative launched earlier this year. The program aims to simplify operations, adopt new technologies, and accelerate growth as Target grapples with a sales slump and an expected decline in annual sales for 2025.
Affected employees will be notified on Tuesday and will continue to receive pay and benefits until January 3, 2026, along with severance packages. The layoffs will not impact roles in Target's stores or supply chain operations.
