Target to cut 1,800 corporate jobs – the first layoffs since 2015

target on thursday informed employee It is the first major corporate workforce cut in a decade as the retailer tries to revive growth after four consecutive years of sluggish sales.

according to wall street journalThe cuts affect approximately 1,800 positions, including 1,000 layoffs and 800 open roles. The move will reduce Target’s 22,000-person global corporate staff by approximately 8%, with 80% of the cuts affecting U.S. employees. The goal is to reduce corporate staff based primarily at their headquarters; The layoffs do not affect store or supply chain employees.

Affected employees will be notified Tuesday and will continue to receive pay and benefits, as well as severance packages, through Jan. 3. wall street journal Report. Target is asking all employees at its US headquarters to work from home for the next week.

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Target’s incoming CEO, Michael Fidelke, who took over in February and currently serves as chief operating officer, told employees about the layoffs. Seen by Memo cnbc,

Fidelke, a 20-year Target veteran who will replace longtime CEO Brian Cornell, said in the memo that the decision to make layoffs was driven by the need to simplify “layers” of “complexity” to speed up decision making.

“The truth is that the complexity we have created over time is holding us back,” Fidelke said in the memo. “Too many layers and overlapping work has slowed down decisions, making it harder to bring ideas to life.”

“Layoffs are a necessary step in building for Target’s future,” Fidelke wrote.

An anonymous corporate Target employee, who works out of the company’s headquarters, reported business insider After Fidelke sent the memo Thursday afternoon, the atmosphere internally was one of “complete panic.”

“We’re all trying to figure out if we’re the essential team that’s going to be hired,” the employee said. BI,

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The layoffs are part of Target’s broader effort to grow after years of disappointing financial results. The retail giant has seen nearly flat or slightly negative sales growth For four consecutive years. Target from financial year 2023 to 2025 annual revenue There was a decrease of about 2.3% or about $2.5 billion, from $109.1 billion in 2023 to $106.6 billion in 2025.

The company’s revenues have been pressured by declining customer traffic and increasing competition from rivals such as Walmart and Amazon. Target’s shares are 65% decline Since peaking in 2021.

Target last made significant workforce cuts in 2015, when the company cut approximately 3,100 jobs As part of a cost-cutting and restructuring plan under then-CEO Cornell. The 2015 restructuring followed the goal Exit the Canadian Retail Market And a major data breach is affecting up to 70 million individuals Last year. Around 1,700 employees were laid off from the headquarters, while around 1,400 vacant posts were also eliminated.

The target’s market capitalization is $43.28 billion At the time of writing, compared to Walmart $849.75 billion and amazon’s $2.38 trillion,

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target on thursday informed employee It is the first major corporate workforce cut in a decade as the retailer tries to revive growth after four consecutive years of sluggish sales.

according to wall street journalThe cuts affect approximately 1,800 positions, including 1,000 layoffs and 800 open roles. The move will reduce Target’s 22,000-person global corporate staff by approximately 8%, with 80% of the cuts affecting U.S. employees. The goal is to reduce corporate staff based primarily at their headquarters; The layoffs do not affect store or supply chain employees.