Target announces 1,800 corporate job cuts as part of business overhaul

Published: Friday, October 24, 2025 at 3:08 pm

Target Announces Corporate Job Cuts Amidst Restructuring

Target is undertaking a significant restructuring effort, announcing plans to eliminate approximately 1,800 corporate positions. The move, revealed Thursday, aims to streamline decision-making processes and revitalize the retailer's customer base. The company spokesperson confirmed that around 1,000 employees will receive layoff notices next week, with an additional 800 vacant positions also being eliminated. These cuts represent roughly 8% of Target's global corporate workforce, with the majority of affected employees based at the company's headquarters.

The restructuring comes as Target faces challenges in a shifting retail landscape. The company has experienced flat or declining comparable sales in nine of the past eleven quarters, with a 1.9% dip in the second quarter of this year, accompanied by a 21% decrease in net income. These struggles are attributed to factors such as inflation impacting consumer spending and competition from rivals like Walmart and Amazon.

Michael Fiddelke, Target's Chief Operating Officer and incoming CEO, communicated the downsizing to employees, citing the need to simplify operations. He emphasized that the current complexity has hindered progress and slowed decision-making. Fiddelke, who will assume the CEO role on February 1st, has outlined three key priorities: re-establishing Target's leadership in merchandise selection and display, enhancing the customer experience through improved store conditions and product availability, and investing in technology. The job cuts are seen as a necessary step to achieve these goals. The company spokesperson clarified that the job cuts will not affect store employees or those in the supply chain. Affected corporate workers will receive pay and benefits until January 8th, along with severance packages.

BNN's Perspective:

While any job loss is regrettable, Target's restructuring appears to be a necessary adjustment to navigate the evolving retail environment. Streamlining operations and focusing on customer experience are crucial steps for the company to regain its competitive edge. The success of this restructuring will depend on the effective implementation of Fiddelke's priorities and the company's ability to adapt to changing consumer preferences.

Keywords: Target, job cuts, layoffs, restructuring, corporate positions, CEO, Michael Fiddelke, retail, sales, customer experience, inflation, Walmart, Amazon, streamlining, supply chain, financial performance

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