Target Corporation (NYSE:TGT) plans to cut around 1,800 corporate roles as the retailer looks to get back to growth, according to several media reports citing an internal memo sent on Thursday.
Job Cuts Amid ‘Complexity’
It marks the first major round of layoffs in a decade for the Minneapolis-based retailer. Incoming CEO Michael Fiddelke, in an internal memo to employees at its headquarters, said the company will be laying off roughly 1,000 global corporate employees and eliminating 800 open roles, according to a report by the Wall Street Journal.
“The truth is, the complexity we've created over time has been holding us back,” Fiddelke said. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
The move will affect approximately 8% of its 22,000 corporate staff, with 80% of the cuts occurring in the U.S.
Target did not immediately respond to Benzinga‘s request for comment.
Employees affected by the layoffs will be paid through January 3, with potential severance payouts, and affected employees will be notified on Tuesday, another report by CNBC said.
Sales Slump Weighs On Shares
The decision to cut jobs comes ahead of the key holiday season, and at a time when Target is grappling with sluggish growth.
The company has reported 11 consecutive quarters of declining or weak comparable sales growth. It is battling slower online growth and rising competition from Walmart (NYSE:WMT) and Amazon.com (NASDAQ:AMZN), and expects a decline in fiscal year 2025 sales.
The impact of tariffs on the company's financial outlook was also acknowledged by outgoing CEO Brian Cornell.
Over the past year, shares of Target have plunged 37.24%. Over the past 5 years, it has fallen over 41%, while competitor Walmart’s shares have surged nearly 123%, according to data from Benzinga Pro.
Benzinga's Edge Rankings place Target in the 23rd percentile for quality and the 64th percentile for growth, reflecting its average performance. Check the detailed report here.
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