Target announced that it will be cutting around 1,800 corporate positions in an effort to streamline decision-making and accelerate initiatives to rebuild the retailer's customer base.
Around 1,000 employees will be given notice next week that their jobs will be terminated, according to a company spokesperson.
This will represent around 8% of Target’s corporate workforce globally, but will mainly impact workers are the company’s Minneapolis headquarters.
Chief Operating Officer Michael Fiddelke, who was announced to be the company’s next CEO effective 1 February 2026, issued a note to personnel announcing the downsizing.
“The truth is, the complexity we’ve created over time has been holding us back,” Fiddelke, a 20-year Target veteran, wrote in his note.
“Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
When he was announced as the next CEO in August, he made his goals of reclaiming the company’s position as a leader in selecting and displaying merchandising, improving the customer experience by making sure shelves are consistently stocked and stores are clean, and investing in technology clear.
This comes as Target attempts to rebound from declining store traffic, inventory troubles and customer backlash.
As a result, the company expects annual sales to decline this year, and its shares have fallen 65% from their all-time high in late 2021.
The company also reported in August that comparable sales dipped 1.9%, when its net income also dipped by 21%.
This has given an advantage to Target competitors like Walmart, which saw shares up by 123% in the past five years, while Target’s have dropped 41% in the same period.
Fiddelke said the downsizing was a "necessary step in building the future of Target and enabling the progress and growth we all want to see."
"Adjusting our structure is one part of the work ahead of us. It will also require new behaviours and sharper priorities that strengthen our retail leadership in style and design and enable faster execution," he wrote.
Affected employees will receive pay and benefits until 3 January 2026, in addition to a severance package, according to a spokesperson.
