Target Australia plans to close its Geelong centre and relocate to Melbourne, which is likely to result in up to 180 job cuts.
Owned by Wesfarmers, employees will be given the option to either choose for voluntary redundancy or get redeployed at other Kmart or Target locations.
In a statement, Wesfarmers department stores division chief Guy Russo said that the management had to make tough decisions to make sure the firm runs profitable.
Russo said: "The Geelong site for the national office is no longer a viable option if if we're to remain competitive and build a profitable business for shareholders, customers and the entire 20,000 team members across our store network."
Three years ago, the retailer had restructured its Geelong headquarters and as part of that exercise, it cut 260 jobs.
Senior management informed employees that the headquarters would be relocated to a western part of Melbourne.
Russo added: "This will take some time and I don't expect us to be moving within the next 12 months."