MINNEAPOLIS — Target Corp. will eliminate about 1,800 corporate positions, roughly 8% of its headquarters workforce, in the retailer’s largest round of layoffs in ten years. The company said the reductions — a mix of about 1,000 layoffs and 800 open roles that will not be filled — are aimed at streamlining decision-making and accelerating growth after several years of stagnant sales.
Incoming chief executive officer Michael Fiddelke, who will succeed longtime CEO Brian Cornell on February 1, outlined the move in a memo to employees Thursday, calling the cuts “a necessary step in building the future of Target.” Employees will learn on Tuesday whether their roles are affected.
“The truth is, the complexity we’ve created over time has been holding us back,” Fiddelke wrote. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
The job reductions come as Target faces mounting pressure to reignite growth following a period marked by declining traffic, excess inventory, and shifting consumer spending patterns. Annual sales are expected to fall again this year, and the company’s shares have dropped roughly 65% from their late-2021 high.
Unlike Walmart, which derives a majority of its revenue from grocery and household essentials, Target depends heavily on discretionary categories such as apparel and home goods — areas where inflation and consumer caution have curbed demand. According to GlobalData Retail, about half of Target’s sales come from non-essential products, compared to roughly 40% at Walmart.
That mix has left Target particularly exposed to fluctuating economic conditions and consumer sentiment, creating a sharp divergence in performance between the two retail giants. Walmart’s stock is up more than 120% over the past five years, while Target’s has fallen by about 40%.
The layoffs are the latest step in a broader effort to simplify operations under the “Enterprise Acceleration Office,” an initiative Fiddelke helped launch in May to modernize processes, strengthen technology capabilities, and position the retailer for faster execution.
In his memo, Fiddelke said the restructuring will allow Target to focus on its core strengths — leading in merchandising, enhancing the customer experience, and using technology to drive innovation. “Adjusting our structure is one part of the work ahead of us,” he said. “It will also require new behaviors and sharper priorities that strengthen our retail leadership in style and design and enable faster execution.”
No positions in stores or distribution centers will be affected, according to a company spokesperson. Employees whose roles are eliminated will receive pay and benefits through January 3, along with severance packages. U.S. headquarters employees have been asked to work from home next week while the changes are implemented.
The decision marks a pivotal moment for Target as it prepares for its first leadership transition in nearly a decade. Cornell, who has led the company since 2014, will hand the reins to Fiddelke, a 20-year Target veteran known for his operational discipline and data-driven approach.
Fiddelke’s message suggests that his tenure will begin with a clear focus on speed, accountability, and simplification — themes that mirror those voiced by other major retailers seeking to adapt to a more volatile marketplace.
“Put together, these changes set the course for our company to be stronger, faster and better positioned to serve guests and communities for many years to come,” he told employees.
While painful for the Minneapolis-based company’s workforce, the cuts underscore the urgency facing Target’s next chapter — one defined less by expansion and more by re-engineering a complex corporate machine to regain its edge in a fiercely competitive retail landscape.
