URGENT UPDATE: Target has just announced plans to eliminate approximately 1,800 corporate jobs in a decisive move aimed at revitalizing its struggling brand. This significant restructuring effort will involve notifying about 1,000 employees next week, while also closing 800 vacant positions, according to a company spokesperson.
The layoffs, representing nearly 8% of Target’s corporate workforce, primarily affect employees at the company’s Minneapolis headquarters. Notably, the cuts will not impact store workers or those in sorting, distribution, and other supply chain roles.
Chief Operating Officer Michael Fiddelke, who is set to become Target’s next CEO on February 1, 2024, communicated the changes in a memo to personnel, emphasizing the need for a streamlined approach to decision-making. He stated, “The truth is, the complexity we’ve created over time has been holding us back.” Employees at the Minneapolis offices have been instructed to work from home next week as the company navigates this transition.
Target’s recent struggles have been exacerbated by rising inflation and increasing competition from giants like Amazon and Walmart. Customers have expressed dissatisfaction with the state of the stores, noting disorganization and an inconsistent selection of merchandise, which has tarnished the brand’s once upscale image.
Fiddelke, a seasoned veteran with 20 years at Target, outlined his key priorities for the company in August, including restoring its reputation for product selection, enhancing the shopping experience by ensuring shelves are stocked, and investing in technology. He reiterated these goals in his recent message, calling the layoffs a “necessary step” towards achieving a more competitive future.
Target has faced declining sales, reporting flat or negative comparable sales in nine of the past 11 quarters. The company’s net income fell by 21% in its second quarter, further highlighting the urgent need for change.
As Target moves forward with these layoffs, stakeholders are watching closely to see how the company implements its strategy to attract customers and regain market share. More details are expected to be shared during a company update scheduled for Tuesday.
This developing story continues to unfold, and the impact on employees and the retail landscape remains significant. Stay tuned for updates as Target embarks on this critical journey to reshape its future.
