Target Announces 1,800 Job Cuts Amid Slumping Sales

Target Corp., the US retail giant headquartered in Minneapolis, has announced its first major corporate layoffs in a decade, with plans to cut approximately 1,800 jobs as part of a significant restructuring initiative. The move comes amid stagnant sales and growing competitive pressure from rivals such as Walmart, Amazon, and Costco.

The announcement was made by Michael Fiddelke, Target’s incoming CEO, in an internal memo to employees. The layoffs will include around 1,000 existing corporate employees, while 800 open positions will be eliminated. Combined, these cuts account for roughly 8% of Target’s global corporate workforce.

Fiddelke highlighted that the company’s organizational structure had become overly complex over time, with too many layers and overlapping responsibilities. This complexity, he said, had slowed decision-making and hindered the development of new ideas, making restructuring necessary to streamline operations.

As part of the transition, all US-based corporate employees have been asked to work from home next week, while affected staff are expected to receive notifications on Tuesday. The decision comes just weeks before the holiday shopping season, traditionally a period when retailers expand their workforce, signaling that this move focuses on operational efficiency rather than cost-cutting alone.

Target has faced multiple challenges over the past year. Sales in key categories, including home goods and clothing, have slowed, and the company has drawn criticism for scaling back certain diversity, equity, and inclusion (DEI) programs. Meanwhile, intensified competition from Walmart, Amazon, and Costco, along with evolving consumer habits, has further pressured the retailer’s performance.

Industry analysts note that Target’s restructuring aligns with broader trends in US retail, where companies are increasingly focusing on simplifying corporate hierarchies and improving decision-making agility to remain competitive in a shifting marketplace. Fiddelke’s memo suggests the company aims to position itself more effectively for long-term growth while maintaining operational flexibility.

Despite the layoffs, Target continues to emphasize its commitment to innovation and efficiency. The company is expected to refocus on core areas, including improving supply chain responsiveness and enhancing customer experience, as it navigates a challenging retail environment.

As Target moves forward, stakeholders will be watching closely to see how the restructuring impacts the company’s performance during the crucial holiday season and whether the streamlined approach helps it regain momentum in a fiercely competitive market.