Retail giant Target has announced a major workforce reduction as part of a broader effort to simplify operations and revitalize growth. The company revealed that 1,800 corporate jobs will be cut, including the termination of 1,000 employees and the closing of 800 vacant positions. This accounts for approximately 8% of Target’s global corporate workforce.
The decision, shared by incoming CEO Michael Fiddelke, reflects the company’s attempts to address stagnating sales and increased competition from major rivals like Walmart and Amazon. Target has faced 11 straight quarters of weak or declining comparable sales, with waning demand for discretionary items such as apparel and electronics contributing to its challenges. Despite this, the company has maintained its annual forecasts after issuing a downgrade earlier this year.
Simplifying complexity to drive growth
In a memo sent to employees, Fiddelke outlined the reasoning behind the workforce reduction, emphasizing the need for Target to operate more efficiently. "The truth is, the complexity we’ve created over time has been holding us back", he said. "Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life."
The restructuring aims to reduce organizational complexity, eliminate overlapping responsibilities, and streamline decision-making processes to foster innovation. While the layoffs affect corporate positions only, store-level and supply chain employees remain unaffected.
Support for affected employees
Target has assured employees impacted by the layoffs that they will receive compensation and benefits through January 3, 2026, along with severance packages and other transitional support. According to a company spokesperson, these measures are intended to ease the transition for affected workers.
Market reaction and future outlook
Following the announcement, Target’s stock experienced a modest increase, signaling investor optimism about the company’s strategic changes. The move underscores the growing pressure on large retailers to adapt to shifting consumer behavior, economic uncertainty, and fierce competition in the global retail market.
Target’s restructuring highlights the challenges facing the retail industry, particularly for businesses struggling to balance operational efficiency with maintaining customer appeal in an increasingly competitive landscape. By addressing internal inefficiencies and simplifying operations, the company hopes to regain its footing and position itself for long-term growth.