American discount retailer Target is axing its workforce at its corporate headquarters and Asia in a bid to reduce $2bn in costs during the next two years.

Besides its headquarters, which employs 13,500 people, Target will axe jobs in Asia in the south Indian city of Bengaluru.

The company is also looking to invest around $2.2bn in capital expenditures for the current fiscal year, out of which around $1bn will be invested in technology.

Target chairman and CEO Brian Cornell said: "We’re seeing early momentum in our efforts to transform Target, and our team is entering the new fiscal year with a singular focus on continuing to differentiate our merchandise assortment and shopping experience while controlling costs by reducing complexity and simplifying the way we work.

"We’re confident that these efforts will allow us to grow our earnings while returning cash to our shareholders in 2015 and beyond, driving improvements in Target’s return on invested capital and creating long-term value for our shareholders."

The new investment is unlike previous investments, which were used in the development of new stores and renovations of over 1,800 stores, reports abcNews.

Target expects its digital sales to increase 40% and same-store sales to rise between 1.5 and 2.5%. It projects overall 2015 sales to grow between 2 and 3%.

The company posted 4.1% increase in sales to $21.8bn during fourth quarter in 2014, when compared to $20.9bn generated in the previous year.