Target to Cut 1,800 Corporate Positions
A view of Target headquarters in downtown Minneapolis Sam Wagner / Shutterstock.com

Target to Cut 1,800 Corporate Positions

Laying off 1,000 workers, the retailer says it’s aiming for agility and speed.

Target is eliminating 1,800 corporate positions. The Wall Street Journal broke the news Thursday.

Employees will learn the status of their employment on Tuesday, Target confirmed in an email. The company is laying off 1,000 employees and closing 800 open roles. Incoming CEO Michael Fiddelke communicated the decision in a note to all headquarters employees, calling it “an important step in accelerating how we work.”

“It’s important to understand that we did not take these actions to save cost,” a Target spokesperson shared by email. “Adjusting our global HQ structure is the first step in rewiring our organization to be agile and make faster decisions.”

Fiddelke contextualized “agility” alongside the spring launch of Target’s Enterprise Acceleration Office. Intended to streamline operations, the office was seen by Wall Street as the Minneapolis-based retail giant’s late response to stagnant or declining sales and eroding market share, which have characterized 11 straight quarters for Target.

In TCB’s Aug/Sept feature on Target’s business troubles, an HQ employee complained of too much bureaucratic approval seeking, which they said slowed merchandise speed to market. Fiddelke appeared to respond to such concerns. “The truth is, the complexity we’ve created over time has been holding us back,” he said in his note. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”

The cuts impact leadership positions at three times the rate of individual roles—seemingly a move to slice through stifling management. No supply-chain or store roles are affected. The downsizing covers about 8% of the company’s global HQ team.

“I would say rumors have been and currently are flying on who the layoffs will impact,” the same employee said Thursday, asking to remain anonymous. “My peers are not happy that [layoffs] were announced today but we all have to wait until Tuesday. We are on edge and no one feels their position is safe.”

Fiddelke said layoffs are part of work to deliver on three goals. He laid them out during Target’s second-quarter earnings call, describing his approach to the CEO role: Reestablish Target as a merchandising authority; elevate the customer experience to recapture the “joy” Target has been known for; and use technology to improve operations speed and guest experience.

Those goals are meant to bring Target back from where it has slipped. Along with poor performance compared to retail rivals Walmart, Amazon, and Costco, Target contends with cultural fallout: backlash to its handling of a Pride merchandise controversy in 2023, plus boycotts that began early this year, brought on by Target’s seemingly Trump-inspired rollback of DEI efforts. Placer.ai has tracked declining foot traffic at Target stores since the boycotts began. The retailer acknowledged in its first-quarter earnings call that the boycotts have hurt business.

Fiddelke requested U.S. headquarters team members work from home next week. Those impacted will receive pay and benefits through Jan. 3, and Target will provide severance packages and “other services and support.”