tl;dr
Target Corp. announces 1,800 corporate layoffs as part of a major restructuring, marking the first significant cuts in a decade. The move, led by incoming CEO Michael Fiddelke, aims to streamline operations and combat stagnant sales amid fierce competition with Walmart.
**Target Announces 1,800 Corporate Layoffs as Part of Restructuring Effort**
Target Corp. has announced the elimination of 1,800 corporate jobs, marking the first major round of layoffs in a decade for the Minneapolis-based retailer. The cuts, revealed in a memo from incoming CEO Michael Fiddelke, aim to streamline operations and reignite growth after four years of stagnant sales.
The layoffs include approximately 1,000 direct layoffs and 800 positions that will not be filled, representing an 8% reduction in Target’s corporate workforce. Affected employees will be notified on Tuesday, with many set to receive pay and benefits through January 3, along with severance packages. Importantly, no roles in stores or the supply chain will be impacted.
The announcement comes as Target prepares for a leadership transition. Fiddelke, currently the company’s chief operating officer and former chief financial officer, will succeed long-time CEO Brian Cornell in February. Fiddelke has spearheaded the Enterprise Acceleration Office, a initiative launched in May to simplify operations, leverage technology, and accelerate growth.
**Challenges and Competition**
Target has faced persistent challenges, including declining store traffic, inventory issues, and customer backlash. The company expects annual sales to decline this year, with shares plummeting 65% since their 2021 peak. Compared to competitors like Walmart, Target’s reliance on discretionary items—half of its sales versus 40% at Walmart—makes it more vulnerable to economic shifts. Over the past five years, Walmart’s stock has surged 123%, while Target’s has fallen 41%.
In his memo, Fiddelke acknowledged the “complexity” that has hindered progress. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life,” he wrote. The layoffs, he emphasized, are a “necessary step” to build a more agile future for the retailer.
**Looking Ahead**
While the cuts signal a strategic pivot, they also highlight the pressures Target faces in a competitive retail landscape. With Fiddelke’s leadership set to take effect in February, the company’s ability to adapt and innovate will be critical in reversing its decline. For now, the focus remains on simplifying operations and positioning Target for sustainable growth amid ongoing challenges.