Target Announces Major Corporate Job Cuts Under New CEO Michael Fiddelke
Target Corp. has announced a significant restructuring plan that includes cutting around 1,000 corporate positions and eliminating 800 open roles. The move, according to the retailer, is aimed at streamlining decision-making, reducing bureaucracy, and boosting growth under incoming CEO Michael Fiddelke.
A Push for Speed and Simplicity
Fiddelke, who will officially take over from Brian Cornell in February, is leading an aggressive effort to make Target a faster, more innovative company. The goal, he says, is to strip away unnecessary layers of management and empower teams to act quickly in a rapidly changing retail environment.
Roughly 80% of the eliminated roles are based in the U.S., primarily at Target’s Minneapolis headquarters and in senior leadership positions. Company data shows that executives are three times more likely to be laid off than other employees as part of this restructuring effort. Overall, the changes affect about 8% of Target’s global headquarters workforce.
“We Need to Work Faster”
“To better serve our guests, we’re prioritizing the need to work faster and reduce complexity that’s built up over time,” Fiddelke said in a statement. “This step strengthens our focus on design, enhances the guest experience, and expands how we use technology to drive growth.”
Affected employees will continue receiving pay and benefits through early January, along with severance packages. Target emphasized that it remains committed to supporting all impacted workers during the transition.
Streamlining for the Future
Since launching the Enterprise Acceleration Office in May, Fiddelke has been spearheading initiatives to simplify company operations, improve collaboration, and harness data and technology more effectively. In a memo to staff, he acknowledged that “too many layers and overlapping work have slowed decisions,” making it harder for the retailer to innovate quickly.
To ensure a smooth transition, U.S. headquarters employees will work remotely next week, while Target’s international teams, including its operations in India, will maintain their regular schedules.
A Difficult but Strategic Decision
Having spent over 20 years at Target, Fiddelke said the decision to reduce staff was not taken lightly but is necessary to position the company for long-term success. “This sets the course for our company to be stronger, faster, and better equipped to serve guests and communities for many years to come,” he said.
As Target’s chief operating officer, Fiddelke previously led initiatives that generated over $2 billion in operational efficiencies, expanded the company’s digital infrastructure, and optimized supply chain systems.
Facing Headwinds in a Tough Retail Market
Despite these efforts, Target has faced recent challenges, including slowing store traffic and declining profits tied to consumer pullbacks and tariff pressures. In its latest fiscal quarter, Target reported $25.2 billion in sales, a 0.9% drop from a year earlier. Comparable-store sales fell 1.9%, with in-store revenue down more than 3%, though online sales grew 4%.
Operating income for the quarter was $1.3 billion, down nearly 20% year over year—a signal that even retail giants aren’t immune to shifting consumer habits and economic uncertainty.
