Target announced on Thursday that it will lay off approximately 1,000 corporate employees and eliminate 800 open positions, marking a significant restructuring effort amid declining sales and competitive pressures. This move affects about 8% of the company’s global corporate workforce and is aimed at streamlining operations for future growth.
The layoffs were communicated to employees in an email from incoming CEO Michael Fiddelke, who emphasized that the changes are designed to make Target stronger, faster, and better positioned. Fiddelke is set to take over from veteran CEO Brian Cornell next year, and this announcement comes at a critical time ahead of the holiday shopping season. The restructuring targets corporate roles primarily in the United States, with the goal of accelerating decision-making and adapting to evolving market conditions.
In total, Target is cutting 1,800 roles, with 1,000 employees being laid off and 800 open positions closed. The company stated that this move is not primarily about cost reduction but about rewiring the organization to enhance agility. Employees in leadership positions were reportedly three times more likely to be affected than other staff, reflecting a shift in corporate structure. Affected workers are expected to receive severance packages and support services, though specific details were not fully disclosed in initial reports.
This decision follows three consecutive quarters of falling sales for Target, driven by shifts in consumer purchasing patterns. Customers are buying less of the retailer’s home goods and clothing, categories that have historically been core to its business. The Minneapolis-based company has been struggling with slumping revenues, which have declined amid broader economic uncertainties and changing retail dynamics. Internal analyses suggest that these trends have persisted despite efforts to revamp marketing and store layouts.
Target has also faced significant blowback from its recent retreat on diversity, equity, and inclusion (DEI) programs. The company, which had built a reputation as a strong supporter of DEI, angered many advocates when it scaled back some initiatives, potentially contributing to the sales decline. This internal conflict has added to the company’s challenges, as it navigates balancing stakeholder expectations with operational efficiency. The DEI changes were implemented earlier this year but continue to resonate in public perception and employee morale.
External factors such as economic conditions and fierce competition from Walmart, Amazon, and Costco have further pressured Target’s performance. The company’s stock has dropped 30% in 2025, making it one of the worst-performing stocks in the S&P 500 index this year. This financial downturn underscores the urgency behind the restructuring, as investors and analysts monitor whether these measures can reverse the negative trajectory. Competitors have capitalized on Target’s struggles by offering lower prices and more seamless online experiences.
Looking ahead, the layoffs represent a pivotal moment for Target as it seeks to revive its business. The company’s ability to navigate these changes and regain consumer trust will be crucial, especially during the upcoming holiday season. Industry observers will be watching closely to see if these measures can stem the sales slide and position Target for a recovery in 2026. Success will depend on executing the restructuring smoothly while addressing underlying issues like product assortment and digital integration.