Retail giant Target appears to be facing fresh challenges. The company announced Thursday that it will cut 1,800 corporate jobs as it works to reignite growth after nearly four years of stagnant sales.
The move, disclosed by incoming CEO Michael Fiddelke, includes the termination of about 1,000 current employees and the closure of 800 vacant roles, representing roughly 8% of the company’s global corporate workforce.
This restructuring is part of a broader strategy to simplify operations, accelerate growth, and address ongoing challenges, including declining sales, inventory issues, and increased competition from rivals like Walmart and Amazon.
In a memo sent Thursday to employees at Target’s headquarters, Fiddelke said the employee cuts will help Target make urgent changes.
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“The truth is, the complexity we’ve created over time has been holding us back,” he said in the memo. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
According to a company spokesman, Target employees affected by the layoffs will receive pay and benefits until January 3, 2026, in addition to severance packages.
The layoffs are focused entirely on corporate positions, leaving store-level employees and supply chain staff unaffected. Affected employees will receive severance packages, benefits through early January 2026, and other transitional support. The company has emphasized that the restructuring is designed to reduce organizational complexity, eliminate overlapping responsibilities, and improve decision-making and innovation.
Target’s announcement comes after 11 consecutive quarters of weak or declining comparable sales, with soft demand for discretionary goods such as apparel and electronics contributing to the slowdown. Despite these challenges, the company has maintained its annual forecasts after previously issuing a downgrade in May.
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Following the news, Target’s stock experienced a modest increase, reflecting investor optimism that the layoffs and operational streamlining will help the company regain efficiency, competitiveness, and long-term profitability.
This development highlights the increasing pressure on major retailers to adapt rapidly to changing consumer behavior, economic uncertainty, and global market competition, underlining the role of corporate restructuring as a tool for sustaining business performance in a challenging retail landscape.
This move also highlights the broader challenges in the retail industry, including weak demand for discretionary items, changing consumer behavior, and heightened competition from rivals such as Walmart and Amazon. Maintaining annual forecasts despite consecutive quarters of weak sales indicates that Target is attempting to balance operational restructuring with ongoing business performance, seeking to reassure investors and the market about its long-term prospects.