Target Announces Major Corporate Job Cuts to Combat Stagnant Sales and Rebuild Brand
Target is cutting 1,800 corporate jobs, 8% of its global workforce, to streamline operations, address stagnant sales, and rebuild its brand after market share losses and customer complaints.
Target to eliminate 1,800 corporate jobs as brand aims to rebuild
New York Daily News
Overview
- Target is eliminating 1,800 corporate jobs, approximately 8% of its global corporate workforce, through layoffs and closing open roles, primarily impacting employees at its Minneapolis headquarters.
- The job cuts are a direct response to stagnant sales, with Target experiencing flat or declining comparable sales in nine of the past eleven quarters, including a 1.9% dip in the second quarter.
- These reductions aim to help Target regain market share lost to competitors like Walmart and Amazon due to inflation, and to rebuild its brand's image and customer base.
- The company also seeks to streamline decision-making and improve its reputation by addressing customer complaints regarding messy stores and merchandise issues, enhancing the overall shopping experience.
- Chief Operating Officer Michael Fiddelke announced the downsizing, which follows a sharp 30% decline in Target's stock in 2025, underscoring the company's significant financial pressures.
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Analysis
Center-leaning sources frame this story around Target's strategic efforts to revitalize its business amidst recent struggles. They emphasize the company's internal rationale for the job cuts, portraying them as a necessary measure to streamline operations and improve performance. The narrative focuses on Target's proactive steps to address "complexity" and "lost ground," rather than dwelling on the negative impact of the layoffs.
"The job cuts will not affect any store employees or workers in Target's sorting, distribution and other supply chain facilities, the company spokesperson said."
ABC News"The cuts represent about 8% of Target’s corporate workforce globally, although the majority of the affected employees work at the company’s Minneapolis headquarters, the spokesperson said."
Associated Press"The cuts mark the first major round of layoffs in a decade for Target, according to CNN."
USA TODAYArticles (7)
FAQ
Target is cutting 1,800 corporate jobs to streamline operations, address stagnant sales after flat or declining comparable sales in most recent quarters, and rebuild its brand following market share loss and customer complaints about store experiences.
The cuts primarily impact approximately 1,000 corporate employees through layoffs and the elimination of about 800 open corporate roles, mostly at Target's Minneapolis headquarters and within managerial and white-collar corporate teams, while store associates and supply chain roles are not affected.
Impacted employees will continue to receive pay and benefits through early January, with additional severance packages and transition assistance provided by the company.
Target aims to reduce organizational complexity and decision-making layers to speed product and pricing decisions, improve customer experience by addressing complaints about messy stores and merchandise, and reallocate resources towards customer-facing investments such as faster delivery and store updates.
Target has experienced sales stagnation, with flat or declining comparable sales in nine of the last eleven quarters, including a 1.9% drop in the second quarter of 2025. Target's stock has also declined sharply, falling approximately 30% in 2025, putting financial pressure on the company.
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