Target to Lay Off 1,800 Corporate Workers as Sales Struggles Persist

Retail giant Target Corporation announced on Thursday that it will reduce its global corporate headcount by approximately 1,800 positions, about 8% of its corporate workforce, for the first time in over a decade, amid a push to streamline operations and boost performance.

The move comprises roughly 1,000 current employee layoffs and the elimination of 800 open roles, with most of the cuts centred at Target’s Minneapolis headquarters. 

Incoming CEO Michael Fiddelke, currently Chief Operating Officer, on Thursday stated in a memo that the structure has become “too complex,” with “too many layers and overlapping work” slowing decision-making and thus "It's a necessary step in building the future of Target."

We have some good news, as these latest layoffs at Target will not impact store staff or supply-chain workers. 

Target has reported flat or declining comparable sales in nine of the past 11 quarters. The company’s net income fell by 21% in its second quarter, and comparable sales dipped 1.9 percent. 

The announcement follows a year in which the company’s shares dropped more than 30 percent, as pressure builds from rivals such as Walmart Inc. and Amazon.com, Inc.. 

Affected employees will continue receiving pay and benefits into early January and will be offered severance. 

Target said the timing, coming just ahead of the 2025 holiday season, reflects urgency to accelerate changes.