Target Cuts 1,800 Corporate Jobs to Streamline Operations and Rebuild Customer Base

The reduction represents approximately 8% of Target's global corporate workforce. (Representational Image)

Target announced on Thursday that it will eliminate around 1,800 corporate positions as part of efforts to streamline decision-making processes and accelerate initiatives aimed at rebuilding its diminishing customer base in the discount retail sector.

According to a company spokesperson, approximately 1,000 employees are scheduled to receive layoff notifications next week, while about 800 vacant positions will also be eliminated. These cuts account for roughly 8% of Target's worldwide corporate workforce, with the majority of affected employees working at the company's headquarters in Minneapolis.

Michael Fiddelke, Chief Operating Officer and incoming CEO effective February 1, issued a communication to staff on Thursday announcing the workforce reduction. He indicated that further details would be provided on Tuesday and requested that employees at the Minneapolis offices work remotely during the next week.

"The reality is that the complexity we've developed over time has been impeding our progress," wrote Fiddelke, who has spent 20 years with Target. "Excessive organizational layers and redundant work have slowed our decision-making processes, making it more difficult to implement new ideas."

Target, which operates approximately 1,980 stores across the United States, has lost market share to competitors Walmart and Amazon in recent years as inflation has forced consumers to reduce discretionary spending. Customers have expressed dissatisfaction with disorganized stores and merchandise that fails to reflect the retailer's historically upscale-yet-affordable positioning that earned it the playful nickname "Tarzhay."

When Fiddelke was announced as Target's next CEO in August, he identified three critical priorities: reestablishing the company's leadership in merchandise selection and presentation; enhancing customer experience through consistent inventory availability and store cleanliness; and increasing technology investments.

He reiterated these objectives in his message to employees, describing the layoffs as a "necessary step in building Target's future and enabling the progress and growth we all aspire to achieve."

"Restructuring our organization is just one component of the work ahead. It will also require new approaches and more focused priorities that strengthen our retail leadership in style and design while enabling faster execution," he stated.

Target has reported stagnant or declining comparable sales—measuring performance from established physical stores and online channels—in nine of the past eleven quarters. In August, the company reported a 1.9% decrease in comparable sales for its second quarter, accompanied by a 21% reduction in net income.

The company spokesperson confirmed that the job cuts will not affect store employees or workers in Target's sorting, distribution, or other supply chain facilities.

Corporate employees losing their positions will continue to receive pay and benefits until January 8, along with severance packages, according to the spokesperson.