In an attempt to expedite decision-making and speed efforts to restore the declining discount retailer's customer base, Target announced on Thursday that it is laying off roughly 1,800 corporate staff.
According to a corporate representative, the company intends to eliminate roughly 800 open positions and is anticipating sending layoff notices to about 1,000 employees next week. According to the spokesman, the majority of the impacted employees are employed at Target's Minneapolis headquarters, although the layoffs account for around 8% of the company's corporate personnel worldwide.
According to a corporate representative, the company intends to eliminate roughly 800 open positions and is anticipating sending layoff notices to about 1,000 employees next week. According to the spokesman, the majority of the impacted employees are employed at Target's Minneapolis headquarters, although the layoffs account for around 8% of the company's corporate personnel worldwide.
The restructuring was announced in a memo to employees on Thursday by Chief Operating Officer Michael Fiddelke, who will take over as Target's next CEO on February 1. He requested that staff members at the Minneapolis headquarters work from home the following week and stated that more information would be provided on Tuesday.
In his note, Fiddelke, a 20-year Target veteran, stated, "The truth is, the complexity we've created over time has been holding us back." "Decisions have been slowed down by too many layers and overlapping work, making it more difficult to realize ideas."
In his note, Fiddelke, a 20-year Target veteran, stated, "The truth is, the complexity we've created over time has been holding us back." "Decisions have been slowed down by too many layers and overlapping work, making it more difficult to realize ideas."
Walmart and Amazon have surpassed Target, which has roughly 1,980 locations in the United States, in recent years as consumers have reduced their discretionary spending due to inflation. Consumers have complained about disorganized storefronts with goods that don't match the upscale-looking but low-cost niche that gave the retailer the mockingly upscale moniker "Tarzhay" in the past.
Regaining the company's position as a leader in merchandise selection and display, enhancing the customer experience by ensuring that shelves are regularly stocked and stores are clean, and investing in technology are the three top priorities Fiddelke stated when he was named Target's next CEO in August.
The layoffs are a "necessary step in building the future of Target and enabling the progress and growth we all want to see," he said in his message to employees, citing the same objectives.
Regaining the company's position as a leader in merchandise selection and display, enhancing the customer experience by ensuring that shelves are regularly stocked and stores are clean, and investing in technology are the three top priorities Fiddelke stated when he was named Target's next CEO in August.
The layoffs are a "necessary step in building the future of Target and enabling the progress and growth we all want to see," he said in his message to employees, citing the same objectives.
One aspect of the job that lies ahead of us is modifying our structure. In order to reinforce our retail leadership in style and design and facilitate quicker execution, it will also necessitate new habits and more focused priorities," he stated.
In nine of the previous eleven quarters, Target has reported flat or declining comparable sales, which include sales from both established physical stores and online outlets. Comparable sales fell 1.9% in the company's second quarter, which also saw a 21% decline in net income, according to an August report.
In nine of the previous eleven quarters, Target has reported flat or declining comparable sales, which include sales from both established physical stores and online outlets. Comparable sales fell 1.9% in the company's second quarter, which also saw a 21% decline in net income, according to an August report.
According to a company spokeswoman, Target's sorting, distribution, and other supply chain workers will not be impacted by the job layoffs, nor will any staff working in its stores.
According to the spokeswoman, severance packages and compensation and benefits would be provided to the corporate employees who lose their employment until January 8.
According to the spokeswoman, severance packages and compensation and benefits would be provided to the corporate employees who lose their employment until January 8.
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