Target will shed 1,800 corporate roles in its first major layoffs in a decade, saying the move is aimed at simplifying the retailer’s structure after a prolonged sales slump and falling shares.
The reduction combines 1,000 redundancies with 800 vacancies that will not be filled, equal to about 8% of the corporate workforce. Staff due to depart are expected to be notified next week.
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Target is a major American retailer known for its general merchandise discount stores, offering a wide range of products from groceries and apparel to electronics and home goods.
The retailer’s incoming chief executive, Michael Fiddelke, said the organisation had become too complex, slowing decision-making and execution.
Leadership seeks simpler structure
In a memo to employees, Fiddelke said layers of management and overlapping responsibilities had hindered pace and delivery.
The restructuring targets office-based functions rather than store or supply-chain teams.
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By GlobalDataTarget framed the cuts as part of a plan to streamline processes, invest in technology and refocus resources on areas expected to support a return to growth.
Sales pressure and market backdrop
The job cuts follow weak trading, with Target warning of continued pressure this year amid softer discretionary spending and stronger competition from online rivals and other big-box chains.
About half of Target’s revenue comes from discretionary categories, leaving it more exposed when consumers rein in non-essential purchases.
The company’s share price has fallen significantly from its 2021 peak, while Walmart has gained over the same period, intensifying comparisons in the “Walmart vs Target” debate among investors.
What the target layoffs involve
The 1,800-role reduction centres on corporate posts tied to management layers and support functions.
Target said affected employees will receive notification directly, with severance and benefits information provided at that time.
The company added that unfilled roles will be removed to help contain costs and simplify reporting lines.
