Target layoffs: 1,800 employees to lose jobs; first major job cuts in a decade

Target Corporation plans to lay off about 1800 corporate employees in its first major cutback in almost ten years. This change aims to improve stagnant sales and make its operations more efficient.Incoming CEO Michael Fiddelke announced this decision in a memo to employees on Thursday.It comes at a time when Target’s share price has lagged behind rivals and the company has faced criticism for scaling back its diversity, equity and inclusion initiatives, according to Reuters. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life,” Fiddelke, who will take over as CEO in February 2026, said in the memo. “It’s a necessary step in building the future of Target.”The cuts will impact about 8% of the corporate workforce. This includes the removal of 800 open positions. Employees affected will keep their pay and benefits through early January, along with receiving severance packages.The reductions will mostly impact managers and will not affect store or supply chain roles.Fiddelke’s appointment decision has been criticized by investors who questioned his ability to address challenges such as inventory management and product selection issues.Target’s shares have fallen nearly a third this year, as the company has faced 11 consecutive quarters of weak or declining comparable sales. It also faces pressure from US tariffs on imports.The retailer maintained its annual forecasts in August, after lowering them in May, citing weak demand for discretionary items such as apparel and electronics.