Target said Thursday that it is eliminating about 1,800 corporate positions in an effort to streamline decision-making and accelerate initiatives to rebuild the flagging discount retailer\u2019s customer base.<\/p>\n
About 1,000 employees are expected to receive layoff notices next week, and the company also plans to eliminate about 800 vacant jobs, a company spokesperson said. The cuts represent about 8% of Target\u2019s corporate workforce globally, although the majority of the affected employees work at the company\u2019s Minneapolis headquarters, the spokesperson said.<\/p>\n
Chief Operating Officer Michael Fiddelke, who is set to become Target\u2019s next CEO on Feb. 1, issued a note to personnel on Thursday announcing the downsizing. He said further details would come on Tuesday, and he asked employees at the Minneapolis offices to work from home next week.<\/p>\n
\u201cThe truth is, the complexity we\u2019ve created over time has been holding us back,\u201d Fiddelke, a 20-year Target veteran, wrote in his note. \u201cToo many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.\u201d<\/p>\n
Target, which has about 1,980 U.S. stores, lost ground to Walmart and Amazon in recent years as inflation caused shoppers to curtail their discretionary spending. Customers have complained of messy stores with merchandise that did not reflect the expensive-looking but budget-priced niche that long ago earned the retailer the jokingly posh nickname \u201cTarzhay.\u201d<\/p>\n
Fiddelke said in August when he was announced as Target\u2019s next CEO that he would step into the role with three urgent priorities: reclaiming the company\u2019s position as a leader in selecting and displaying merchandise; improving the customer experience by making sure shelves are consistently stocked and stores are clean; and investing in technology.<\/p>\n
He cited the same goals in his message to employees, calling the layoffs a \u201cnecessary step in building the future of Target and enabling the progress and growth we all want to see.\u201d<\/p>\n
\u201cAdjusting our structure is one part of the work ahead of us. It will also require new behaviors and sharper priorities that strengthen our retail leadership in style and design and enable faster execution,\u201d he wrote.<\/p>\n
Target has reported flat or declining comparable sales \u2014 those from established physical stores and online channels \u2014 in nine out of the past 11 quarters. The company reported in August that comparable sales dipped 1.9% in its second quarter, when its net income also dropped 21%.<\/p>\n
The job cuts will not affect any store employees or workers in Target\u2019s sorting, distribution and other supply chain facilities, the company spokesperson said.<\/p>\n
The corporate workers losing their jobs will receive pay and benefits until Jan. 8 as well as severance packages, the spokesperson said.<\/p>\n<\/p>\n
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