In a bold move aimed at reviving growth and simplifying operations, Target Corporation has announced plans to eliminate roughly 1,800 corporate positions—representing about 8% of its global corporate workforce.
What the Numbers Show
Of the total cuts, about 1,000 current employees will lose their jobs, and an additional 800 open positions will be closed. Importantly, these layoffs are confined to corporate and headquarters roles and do not affect store staff or supply-chain workers. The move marks Target’s first major round of job cuts in nearly a decade.
Why Now?
Incoming CEO Michael Fiddelke (who takes over in February 2026) cited layers of internal complexity, overlapping responsibilities and a deceleration in decision-making as key factors. As he wrote in his memo: “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life. The backdrop to the decision: Target has endured 11 consecutive quarters of weak or declining comparable sales, as consumers pull back on discretionary spending and competition intensifies.
What It Means for Retail and Employment
For employees: A headcount reduction of this magnitude affects morale, talent retention and internal culture. While store jobs remain untouched for now, corporate roles will bear the brunt.
For the company: The restructuring signals a shift toward leaner operations, faster decision-making and greater agility in merchandising and technology. Fiddelke plans to invest more in customer experience and digital capabilities. The Business of Fashion
For the wider sector: Target’s move follows similar workforce reductions across the retail industry, where cost pressures, inflation and changing consumer behavior force companies to rethink their structures.
Broader Implications for the Workforce & Economy
These layoffs are a reminder that even major brands cannot escape structural shifts. Automation, supply-chain disruption and rising price pressures mean companies are reevaluating roles, functions and workforce size. For job seekers and employees, this means:
Skills in digital, analytics and customer experience will be increasingly valued.
Corporate and back-office roles are more vulnerable during restructuring phases.
The importance of adaptability and upskilling in a changing labour market has never been greater.
The Message to the Market Watchers
The market response was muted but pointed: Target’s stock remains under pressure (down ~30% this year), reflecting investor skepticism. By cutting headcount, the company is signaling cost discipline but also acknowledging that deeper changes may be needed to regain its competitive edge against rivals like Walmart Inc. and Amazon.com, Inc..
What to Watch Next
Whether Target announces further restructuring (store closures, digital overhaul, supply-chain changes).
The impact of these cuts on Target’s ability to deliver on its three priorities: merchandising, customer experience and technology investment.
How the broader retail labor market behaves in the next 6–12 months: will job cuts accelerate, or will new roles emerge in growth functions?