Target is eliminating 1,800 corporate jobs as it looks to reclaim its
lost luster
[October 24, 2025] By
LISA LEFF
Target said Thursday that it is eliminating about 1,800 corporate
positions in an effort to streamline decision-making and accelerate
initiatives to rebuild the flagging discount retailer’s customer base.
About 1,000 employees are expected to receive layoff notices next week,
and the company also plans to eliminate about 800 vacant jobs, a company
spokesperson said. The cuts represent about 8% of Target's corporate
workforce globally, although the majority of the affected employees work
at the company's Minneapolis headquarters, the spokesperson said.
Chief Operating Officer Michael Fiddelke, who is set to become Target's
next CEO on Feb. 1, issued a note to personnel on Thursday announcing
the downsizing. He said further details would come on Tuesday, and he
asked employees at the Minneapolis offices to work from home next week.
“The truth is, the complexity we’ve created over time has been holding
us back,” Fiddelke, a 20-year Target veteran, wrote in his note. “Too
many layers and overlapping work have slowed decisions, making it harder
to bring ideas to life.”
Target, which has about 1,980 U.S. stores, lost ground to Walmart and
Amazon in recent years as inflation caused shoppers to curtail their
discretionary spending. Customers have complained of messy stores with
merchandise that did not reflect the expensive-looking but budget-priced
niche that long ago earned the retailer the jokingly posh nickname “Tarzhay.”
Fiddelke said in August when he was announced as Target's next CEO that
he would step into the role with three urgent priorities: reclaiming the
company’s position as a leader in selecting and displaying merchandise;
improving the customer experience by making sure shelves are
consistently stocked and stores are clean; and investing in technology.
[to top of second column] |
A person walks towards a Target store, July 15, 2025, in Nashville,
Tenn. (AP Photo/George Walker IV, File)
 He cited the same goals in his
message to employees, calling the layoffs a "necessary step in
building the future of Target and enabling the progress and growth
we all want to see."
"Adjusting our structure is one part of the work ahead of us. It
will also require new behaviors and sharper priorities that
strengthen our retail leadership in style and design and enable
faster execution," he wrote.
Target has reported flat or declining comparable sales — those from
established physical stores and online channels — in nine out of the
past 11 quarters. The company reported in August that comparable
sales dipped 1.9% in its second quarter, when its net income also
dropped 21%.
The job cuts will not affect any store employees or workers in
Target's sorting, distribution and other supply chain facilities,
the company spokesperson said.
The corporate workers losing their jobs will receive pay and
benefits until Jan. 8 as well as severance packages, the
spokesperson said.
All contents © copyright 2025 Associated Press. All rights reserved |
