Target to Cut 500 Jobs in Latest Round of Corporate Layoffs

Target Corporation has announced another round of layoffs, cutting roughly 500 positions across the company as it seeks to reallocate resources toward improving the in-store customer experience.

The job reductions were outlined in an internal memo sent to employees on Monday and confirmed by the company. The move marks the second major wave of layoffs Target has made in the past five months and comes less than two weeks after Michael Fiddelke officially stepped into the role of chief executive officer.

According to the memo, which was signed by chief stores officer Adrienne Costanzo and chief supply chain and logistics officer Gretchen McCarthy, the cuts are part of a broader restructuring effort aimed at streamlining operations.

Which Roles Are Being Eliminated

Target emphasized that the majority of the job cuts will not affect store-level retail workers. Instead, about 400 positions will be eliminated across the company’s distribution network, with another 100 roles cut at the store district level.

Target’s roughly 2,000 stores are divided into geographic districts, each overseen by corporate employees responsible for operations and performance across multiple locations. The company said it plans to reduce the number of these districts, which will result in fewer corporate positions overseeing them.

With approximately 440,000 employees worldwide, the elimination of 500 roles represents about one-tenth of 1% of Target’s total workforce.

Reinvesting in the Store Experience

The memo explained that the cost savings from the layoffs will allow Target to direct more resources back into its stores, particularly through increased staffing and training.

“This change also fuels our ability to put significantly more payroll in our stores,” the memo stated, “primarily in additional labor and hours where needed most, but also in new guest experience training for every team member at every store.”

Target has faced mounting customer complaints in recent years, with shoppers citing longer checkout lines, cluttered aisles, and difficulty finding assistance. Analysts and employees alike have pointed to staffing reductions and the diversion of workers to fulfill online and curbside pickup orders as key contributors to these issues.

By shifting payroll away from corporate and distribution roles and toward store floors, Target appears to be attempting to address those concerns directly.

Layoffs Come Early in New CEO’s Tenure

The timing of the cuts has drawn attention, as they come shortly after Fiddelke assumed the CEO role earlier this month. Fiddelke, who previously served as Target’s chief operating officer, was named the company’s next chief executive last year.

This is not the first round of layoffs tied to his leadership. In October, before officially becoming CEO, Fiddelke notified employees that Target would eliminate approximately 1,800 positions. At the time, he described the move as “a necessary step in building the future of Target and enabling the progress and growth we all want to see.”

The latest cuts suggest Fiddelke is continuing to reshape the company’s structure early in his tenure, with a focus on operational efficiency and customer-facing improvements.

Broader Challenges Facing the Retailer

Target’s restructuring comes as the retailer navigates a difficult economic and political environment. Sales have been largely flat year over year, as inflation and economic uncertainty have led many cost-conscious consumers to reduce discretionary spending. A significant portion of Target’s merchandise consists of non-essential goods, making the company particularly vulnerable to shifts in consumer behavior.

The retailer has also faced higher costs due to tariffs imposed by President Donald Trump on goods imported from China and other parts of Asia, where many of Target’s products are manufactured. Those tariffs have increased expenses at a time when the company has struggled to raise prices without losing customers.

Target also faced self-inflicted challenges last year when it reversed course on its diversity, equity, and inclusion initiatives following Trump’s return to the White House. The decision sparked consumer backlash and boycotts, with foot traffic reportedly falling by nearly 8% at many locations.

How Investors Are Reacting

Despite the announcement of additional layoffs, investors appear largely unfazed. Target shares closed roughly flat on Monday at $115.52 per share. In premarket trading Tuesday, the stock was up about 0.4%.

The muted reaction suggests investors believe the job cuts and district restructuring will have little immediate impact on the company’s financial performance.

Target’s stock has rebounded significantly in recent months. Shares are up more than 18% year to date, though they remain about 12% lower than a year ago. The stock has recovered sharply since hitting a low of around $83 in November.

What Comes Next

Target’s leadership has signaled that the layoffs are part of a broader effort to refocus the company on its core retail operations. Whether the strategy succeeds will likely depend on whether increased in-store staffing and training translate into a noticeably better shopping experience.

For now, the retailer appears to be betting that a leaner corporate structure and greater investment at the store level will help it regain customer loyalty and stabilize performance in an increasingly competitive retail landscape.

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