Target Corp. is eliminating 1,800 corporate roles as part of a company-wide streamlining initiative — its largest round of layoffs in a decade, as the retailer seeks to boost efficiency and speed up decision-making.
The total includes approximately 1,000 layoffs and the permanent closure of around 800 open positions that will no longer be filled.
The move, which does not affect in-store jobs, represents about 8% of Target’s global corporate workforce.
The decision was announced in a memo to employees by COO Michael Fiddelke, who will succeed Brian Cornell as CEO in February.
Fiddelke also leads the company’s Enterprise Acceleration Office, launched in May to identify ways to simplify operations and drive greater agility.
“This spring, we launched our enterprise acceleration efforts with a clear ambition: to move faster and simplify how we work to drive Target’s next chapter of growth,” Fiddelke said in the memo, as reported by CNBC.
“The truth is, the complexity we’ve created over time has been holding us back. Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
The restructuring comes as Target faces stagnant sales and earnings declines, even as competitors like Walmart continue to gain ground.
In August, the retailer reported year-over-year drops in both net earnings and sales for the second quarter, though results slightly exceeded Wall Street expectations. The company still anticipates a full-year sales decline.
Fiddelke described the layoffs as “difficult but necessary” for building a leaner, more effective organisation. “This is a necessary step in building the future of Target and enabling the progress and growth we all want to see,” he wrote.
Employees affected by the cuts will receive pay and benefits through 3 January 2026, including severance packages. Target is expected to announce further details regarding changes to its headquarters structure next week.
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