Target Corp. said on Thursday (Oct. 23) that it will eliminate 1,800 corporate roles, or 8% of its headquarters workforce, in its largest restructuring in years, a move designed to streamline operations and reduce costs as it battles waning sales and investor skepticism.
According to Bloomberg, the cuts include roughly 1,000 layoffs and the closure of 800 open roles. Chief Operating Officer Michael Fiddelke, who will become CEO in February, told employees that “too many layers and overlapping work” had slowed down decisions and innovation.
“The complexity we’ve created over time has been holding us back,” he wrote.
The Minneapolis-based retailer directed all headquarters employees to work remotely next week while the restructuring is implemented. The move comes amid a challenging year for the retailer, which has struggled to balance value pricing with profitability. CNBC reported that Target has fallen behind competitors in attracting both shoppers and investors, as consumers pivot toward lower-cost retailers and private-label goods. Analysts have pointed to slower inventory turnover, cautious spending among middle-income households, and brand controversies as drags on performance.
In its most recent quarter, PYMNTS reported that sales declined as customers focused on food, healthcare, and household staples rather than discretionary categories like apparel and home decor. CEO Brian Cornell, who will step down early next year, said the company was focusing on efficiency and disciplined investments to “navigate a more selective consumer.”
The challenge for Target is to restore confidence among both shoppers and investors while balancing cost controls with renewed brand differentiation. As Fiddelke prepares to take charge, the retailer’s reset underscores a broader shift in U.S. retail toward leaner, faster and more data-driven operations. That reset is taking place in a retail climate defined by caution. Forbes reported that many major U.S. retailers, including Target, are holding back on seasonal hiring for the holiday rush as they tighten expenses and brace for muted consumer demand.
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