Target plans to eliminate about 1,800 corporate roles as it works to overhaul its strategy and revive stagnant sales. The company announced Thursday that it will lay off roughly 1,000 global corporate employees and cancel 800 open positions, amounting to about 8% of its 22,000 corporate workforce, with about 80% of the cuts affecting U.S.-based staff.
“The truth is, the complexity we’ve created over time has been holding us back,” Michael Fiddelke, Target’s incoming chief executive, said in a memo to employees. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
Target to cut about 1,800 corporate roles
Fiddelke instructed all corporate employees in the United States to work from home the following week and informed staff that Target would provide an outline of the restructuring details on Tuesday. “It will be difficult,” he wrote. “It’s a necessary step.”
The retailer was under pressure to change course after 11 consecutive quarters of weak or declining comparable sales, which led to the layoffs. Fiddelke was named Target’s next CEO during the summer, and he will officially start in February. Also, to speed up improvements, the company will simplify headquarters operations and bring the brand back to its design identity. Fiddelke has already started working on some changes.
According to Fiddelke, he wants to improve the shopping experience for customers and expedite the company’s internal adoption of technology while maintaining the brand’s core value of creativity. In an August interview at Target’s Minneapolis headquarters, he declared, “Style and design are our North Star.” “Target is being its most Target when those things are true.”
Additionally, investors reacted negatively to Target’s appointment of Fiddelke as CEO, causing the stock to drop 6.3%. It was hoped by many shareholders that Target would hire an outside leader to spearhead change. Brian Cornell, the company’s current CEO, will continue to serve as executive chairman of Target’s board.
Featured Image Credit: Yan Krukau; Pexels: Thank you!
