Target to cut 1,800 corporate jobs in major restructuring push
What's the story
American retailer Target Corporation is set to cut around 1,800 corporate jobs in a major restructuring effort aimed at reviving stagnant sales, according to The Wall Street Journal. Incoming CEO Michael Fiddelke's memo explained that the layoffs will involve approximately 1,000 current employee terminations and 800 positions that won't be filled.
Impact assessment
Layoffs won't affect store or supply chain roles
The layoffs will impact nearly 8% of Target's corporate workforce. The company's total workforce stood at some 440,000 employees as of February 1. The cuts won't affect store or supply chain roles. Employees affected by the layoffs will be informed on Tuesday and continue to receive their pay and benefits until January 3, along with severance packages.
CEO's vision
'Complexity we've created over time has been holding us back'
Fiddelke stressed the need for urgency and simplification in his memo. "The truth is, the complexity we've created over time has been holding us back," he said. "Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life." He acknowledged that while these cuts are difficult, they are necessary for building Target's future and enabling desired progress and growth.
Leadership transition
Fiddelke's background and immediate priorities as CEO
Fiddelke has held a variety of roles at Target over the last 20 years, including finance, merchandising, human resources, and operations. As COO and former CFO, he has overseen major investments in Target's stores, supply chain, digital platforms, and workforce. He previously worked at Deloitte and holds an MBA from Northwestern University's Kellogg School of Management. His three immediate priorities as CEO are reclaiming merchandising authority, enhancing the shopping experience, and investing in technology.
Market trends
Layoffs part of broader trend across US industries
Target's decision to lay off employees comes amid a wider trend of job cuts across various US industries, including media, retail, and tech. The layoffs are part of an effort to streamline operations and address excessive complexity. Economic conditions and competition from Walmart, Amazon, and Costco have also impacted Target. An anonymous employee told Business Insider they first heard about potential layoffs after a Minneapolis car service owner's TikTok post went viral.