Target announced Thursday that it will eliminate approximately 1,800 corporate positions, marking the retailer’s first significant workforce reduction in a decade. The cuts include 1,000 layoffs set to take effect next Tuesday and 800 open roles that will be discontinued. This move will reduce Target’s global corporate staff from 22,000 to roughly 20,200 employees, representing an 8% reduction. Incoming CEO Michael Fiddelke delivered the news via memo, citing the need to revitalize growth following four consecutive years of sluggish sales performance.
Corporate Headquarters Takes Brunt of Cuts
The majority of affected employees work at Target’s Minnesota headquarters, with approximately 80% of layoffs impacting U.S.-based staff. Store and supply chain workers remain unaffected by these corporate restructuring efforts. The announcement sent shockwaves through the organization, with anonymous employees describing a state of “total panic” as workers scrambled to determine whether their roles were deemed “essential” to the company’s future operations.
Strategic Restructuring Amid Sales Challenges
Target’s decision reflects broader challenges facing the retail sector as consumer spending patterns shift and competition intensifies. The company hopes that streamlining its corporate operations will enable it to become more agile and cost-efficient. By reducing administrative overhead, Target aims to refocus resources on store operations and customer-facing initiatives. The layoffs represent a significant organizational pivot as new leadership attempts to reverse the retailer’s recent financial trajectory and drive renewed growth momentum.