Target cutting 1,800 corporate jobs in efficiency move
Target Corp. is eliminating jobs in its biggest round of layoffs in a decade as it looks to become more efficient and streamline decision-making.
The discounter is cutting 1,800 corporate jobs, with the total including about 1,000 employee layoffs and some 800 open positions that will no longer be filled. The layoffs were announced in a memo sent by Target COO Michael Fiddelke, who will take the reins as CEO in February, to employees at the company’s Minneapolis headquarters.
Fiddelke also oversees the chain’s “Enterprise Acceleration Office” effort, which launched in May. The initiative was charged with looking into ways to drive greater speed and agility across the company.
“This spring, we launched our enterprise acceleration efforts with a clear ambition: to move faster and simplify how we work to drive Target’s next chapter of growth,” Fiddelke said in the memo as reported by CNBC. “The truth is, the complexity we’ve created over time has been holding us back. Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
The cuts, which do not affect in store jobs, amount to approximately 8% of the retailer’s global corporate workforce. They come as Target is looking to rebound from stagnant sales and return to growth as rival Walmart continues to soar. In August, Target reported year-over-year declines in net earnings and sales for its second quarter. (Its results, however, exceeded Wall Street estimates.) The company expects annual sales to decline this year.
In his memo, Fiddelke said that the jobs cuts are difficult, but “a necessary step in building the future of Target and enabling the progress and growth we all want to see.” He noted that Target will share changes to its headquarters structure on Tuesday.
Employees affected by the cuts will receive pay and benefits through Jan. 3, 2026, including severance packages.
