Target to Cut 1,800 Corporate Jobs Amid Efforts to Revive Growth
The cuts were revealed in a memo sent on Thursday by incoming CEO Michael Fiddelke to Target’s headquarters employees, as per a CNBC report.
According to a company spokesperson, the job reductions include about 1,000 layoffs and the elimination of roughly 800 open roles that will not be filled, amounting to around 8% of Target’s corporate workforce, as reported by CNBC. Employees affected by the decision will be notified on Tuesday, as per the report.
The announcement comes as Target prepares for a leadership transition, as per CNBC. Fiddelke, currently serving as chief operating officer and formerly chief financial officer, is set to succeed longtime CEO Brian Cornell on February 1, as per the CNBC report.
Fiddelke has been leading the Enterprise Acceleration Office, an initiative launched in May aimed at simplifying operations, adopting new technologies, and accelerating growth, as per the report.
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Target Stock Down 65% Since 2021 Peak
Target has been struggling with a sales slump and expects annual sales to decline this year, as per CNBC. Its stock has fallen about 65% since reaching an all-time high in late 2021, as per the CNBC report.
Why Is Target Laying Off Workers
In his memo, Fiddelke said the cuts are intended to help the company move with greater urgency. He wrote that, “This spring, we launched our enterprise acceleration efforts with a clear ambition: to move faster and simplify how we work to drive Target’s next chapter of growth,” as quoted by CNBC. Fiddelke added, “The truth is, the complexity we’ve created over time has been holding us back. Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life,” as quoted in the report.
He described the layoffs as difficult but necessary, calling it “a necessary step in building the future of Target and enabling the progress and growth we all want to see,” as quoted in the report.
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Target to Restructure Headquarters Operations
Fiddelke shared that, “On Tuesday, we’ll share changes to our headquarters structure as an important step in accelerating how we work. This includes eliminating about 1,800 non-field roles — about 8% of our global HQ team,” adding, “As we make these changes, I’m asking all U.S. HQ team members to work from home next week. Target in India and our other global teams will follow their in-office routines,” as quoted by CNBC.
Severance Packages and Support for Affected Employees
A company spokesperson told CNBC that the affected employees will continue to receive pay and benefits until January 3, along with severance packages. The layoffs will not impact roles in Target’s stores or supply chain operations, as per the report.
FAQs
How many employees will be affected by Target layoffs?
About 1,800 corporate roles will be eliminated, including 1,000 layoffs and 800 unfilled positions, as per the CNBC report.
Who announced the layoffs at Target?
Incoming CEO Michael Fiddelke announced the cuts in a memo to corporate employees, as per the CNBC report.