Key Takeaways
- Target is cutting 1,800 corporate jobs, representing 8% of its corporate workforce
- The restructuring aims to reverse 11 consecutive quarters of stagnant or declining sales
- Affected employees will receive pay and benefits until January 3 plus severance packages
Target Corporation will eliminate approximately 1,800 corporate positions as incoming CEO Michael Fiddelke implements a major restructuring to boost stagnant sales. The Wall Street Journal first reported the layoffs on Thursday, citing internal sources familiar with the company’s plans.
The job cuts include about 1,000 current employee terminations and 800 open positions that will remain unfilled. These reductions affect only corporate roles and do not impact store or supply chain employees. As of February 1, Target employed approximately 440,000 people across its operations.
Restructuring After Prolonged Sales Slump
The workforce reduction comes after Target experienced 11 straight quarters of weak or declining comparable sales. The company’s corporate structure had become increasingly complex, slowing decision-making and hindering innovation.
According to CNBC, affected employees will receive notification on Tuesday and will continue to receive their regular pay and benefits until January 3, along with severance packages.
CEO’s Statement on Strategic Shift
In a memo to staff, incoming CEO Michael Fiddelke emphasized the need for urgency and simplification. “The truth is, the complexity we’ve created over time has been holding us back,” Fiddelke stated. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
He acknowledged the difficulty of the cuts but described them as essential for Target’s future. “These cuts are difficult, but a necessary step in building the future of Target and enabling the progress and growth we all want to see,” Fiddelke added.
Fiddelke’s Background and Leadership Priorities
Michael Fiddelke brings two decades of Target experience to the CEO role, having worked across finance, merchandising, human resources, and operations. Previously serving as chief operating officer and chief financial officer, he oversaw significant investments in Target’s stores, supply chain, digital platforms, and workforce.
Fiddelke has outlined three urgent priorities for his leadership:
- Reclaiming merchandising authority: Strengthening Target’s leadership in product selection and trend-setting capabilities
- Enhancing the shopping experience: Ensuring consistent store stock levels and maintaining clean locations to improve customer satisfaction
- Investing in technology: Upgrading both in-store and supply chain technology to boost operational efficiency and service quality
Prior to joining Target, Fiddelke worked at Deloitte and holds an MBA from Northwestern University’s Kellogg School of Management along with an industrial engineering degree from the University of Iowa.
