MINNEAPOLIS / LONDON (IT BOLTWISE) – Target is facing a significant restructuring that could change the company forever. Facing financial challenges and declining sales, the retail giant plans to cut 1,800 jobs to increase efficiency and speed up decision-making processes. These measures are intended to create the basis for future growth.
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Target, one of the largest retailers in the US, has announced that it will cut 1,800 jobs across its company, including 1,000 layoffs and 800 unfilled positions. This decision comes amid financial challenges and declining sales that have weighed on the company in recent quarters. The restructuring aims to increase efficiency and speed up decision-making processes by reducing complex structures.
Michael Fiddelke, Target’s current COO, will lead the restructuring and assume the role of CEO beginning in February 2026. In an internal memo, Fiddelke emphasized that the complexity of the company’s structures had hindered growth. He plans to simplify processes and make better use of technology and data to move the company forward.
The announcement comes as Target faces a nearly 2% decline in comparable sales in the second quarter of fiscal 2025. The company’s shares have fallen over 30% since the beginning of the year. Despite various measures to reverse the trend, Target expects sales to continue to decline throughout 2025.
Economic conditions, including inflation and rising costs, have weakened the labor market. According to the US Bureau of Labor Statistics, 911,000 fewer jobs were created than expected in the 12 months ending March 2025. This development makes it more difficult for job seekers to find new positions, which increases pressure on the labor market.
Experts warn that job cuts as a short-term solution often do not produce the desired results and involve hidden costs that can affect a company’s profitability and innovation. Nevertheless, in difficult economic times, many companies see no other option than to redirect resources to more profitable areas.
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