Target, which has been struggling with sales in recent years, is eliminating 1,800 roles or about 8% of the company’s global HQ team, in a restructuring aimed to reduce “layers and overlapping work,” according to a memo seen by ABC News.
The Minneapolis-based company is in the middle of a CEO transition with incoming chief executive Michael Fiddelke, a company veteran who will take the top job in February, and has started to implement his vision.
“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,” Michael Fiddelke, COO and incoming CEO of Target, wrote in a note to all of Target’s HQ Team Members.
The cuts — which break down as layoffs for 1,000 people and closing out 800 open roles — will impact managers at about 3 times the rate of other employees. Those affected will receive pay and benefits until Jan. 3, 2026, as well as severance packages and other services and support.
“We’ve announced changes to our corporate structure today in an effort to accelerate our strategy and return to growth. It’s important to understand that we did not take these actions to save cost; adjusting our global HQ structure is the first step in rewiring our organization to be agile and make faster decisions,” a company spokesperson said.
No roles in stores or the supply chain are impacted, the spokesperson added.
The memo stated that all US employees at the company’s headquarters should work from home next week, and the changes will be announced on Tuesday.
“Decisions that affect our team are the most significant ones we make, and we never make them lightly. I know the real impact this has on our team, and it will be difficult. And, it’s a necessary step in building the future of Target and enabling the progress and growth we all want to see,” Fiddelke wrote.
Target has faced sales issues after booming in the acute phase of the COVID-19 pandemic and has struggled with inventory and brand issues, as it faced backlash for ending its corporate diversity, equity, and inclusion policies.
