A Target logo is displayed outside one of their stores on August 2, 2025 in San Diego, California.
Kevin Carter | Getty Images
Target announced Thursday that it is cutting 1,800 jobs at the company as the retailer attempts to return to growth after four years of roughly stagnant sales.
It’s the first major round of layoffs in a decade for the Minneapolis-based retailer. The company announced the layoffs in a memo sent by new Target CEO Michael Fiddelke to employees at its corporate headquarters.
The eliminated positions represent a combination of about 1,000 layoffs and about 800 positions that will no longer be filled, a company spokesperson said. Together, they represent an approximately 8% reduction in Target’s workforce, according to the memo. The employees concerned will be informed on Tuesday.
The retailer announced the reductions ahead of a leadership change.
Target in August named Fiddelke, currently chief operating officer and former chief financial officer, to succeed longtime leader Brian Cornell. He takes the helm on February 1.
Fiddelke also oversaw the Enterprise Acceleration Office, an effort announced in May that sought ways to simplify the company’s operations, use technology in new ways and accelerate Target’s growth.
The retailer is battling a decline in sales and said it expects a decline in annual sales this year. Target shares have fallen about 65% since their all-time high in late 2021.
In a memo sent to Target headquarters employees Thursday, Fiddelke said the workforce reductions would help Target act with urgency.
“The truth is that the complexity we have created over time has held us back,” he said in the memo. “Too many layers and overlapping work slowed down decisions, making it more difficult to bring ideas to fruition.”
He said the cuts are difficult, but “a necessary step to build Target’s future and enable the progress and growth we all want to see.”
Target employees affected by the layoffs will receive salaries and benefits through Jan. 3, in addition to severance packages, according to a company spokesperson. No positions in Target’s stores or supply chain were affected by the reductions, the company spokesperson said.
Read Fiddelke’s full memo:
Team,
This spring, we launched our business acceleration efforts with a clear ambition: to move faster and simplify the way we work to drive Target’s next chapter of growth. The truth is that the complexity we have created over time is holding us back. Too many layers and overlapping work slowed down decisions, making it more difficult to bring ideas to fruition.
On Tuesday, we will share changes to our headquarters structure as an important step in accelerating the way we work. This includes the elimination of approximately 1,800 off-field positions, or approximately 8% of our global headquarters team. As we make these changes, I ask everyone US headquarters team members will be working from home next week. Target in India and our other global teams will follow their office routines.
The decisions that affect our team are the most important ones we make, and we never take them lightly. I know the real impact this has on our team, and it will be difficult. And it’s a necessary step to build Target’s future and enable the progress and growth we all want to see.
Adjusting our structure is part of the work ahead of us. It will also require new behaviors and sharper priorities that will strengthen our style and design leadership and enable faster execution so we can:
- Lead with merchandising authority;
- Improve the customer experience with every interaction; And
- Accelerate technology to empower our team and delight our customers.
Together, these changes chart a course for our company to be stronger, faster and better positioned to serve customers and communities for many years to come.
Michael