(qlmbusinessnews.com . Sun 26th Oct, 2025) London, UK —
Inside Target’s Bold Move: 8% Job Reduction Aimed at Streamlining Operations for Growth
Target Announces Major Job Cuts in Corporate Restructuring Effort
In a significant move to revitalise its lagging sales figures, Target, the American retail behemoth, has announced its decision to reduce its corporate workforce by approximately 1,800 positions. This announcement was made to the employees on Thursday, marking a pivotal moment for the retailer in its pursuit to rejuvenate growth after a four-year period of sales stagnation.
Scheduled to commence next week, this reduction represents the company's most substantial cutback in over a decade, eliminating close to 8% of its worldwide corporate staff. “An excess of layers and duplicate roles have decelerated decision-making, hindering our ability to actualise innovative ideas,” stated the incoming CEO, Michael Fiddelke, in a company memo.
This decision comes at a time when Target has been trailing behind its competitors, such as Walmart, exacerbated by consecutive quarters of disappointing sales figures and a declining share value. The retailer's struggles have been compounded by reduced consumer spending on non-essential goods and controversy surrounding its diversity policies.
Fiddelke, who has been with Target for two decades, described the job cuts as a “crucial step towards shaping Target's future”. Officially taking over the reins from Brian Cornell as CEO in February, Fiddelke's leadership emerges amidst challenging times for the retailer.
A breakdown of the layoffs reveals that 1,000 current corporate roles will be terminated, with an additional 800 vacant positions being dissolved, detailed a spokesperson from Target. Further information on the job cuts is anticipated to be released on Tuesday, with Fiddelke advising corporate staff in the US to work remotely in the coming week.
Importantly, the announced layoffs will not impact the retail workers employed across Target's nearly 2,000 US outlets. Traditionally celebrated for its reasonably priced apparel, diverse grocery selection, and an extensive array of affordable homeware, electronic goods, and toys, Target has faced vulnerability due to its heavy reliance on non-essential items, which constitutes around half of its sales.
The retailer's fiscal challenges are not only a reflection of the broader economic pressures, such as rising inflation and tariff uncertainties, but also stem from unique internal issues like inventory management problems and backlash from its decision to discontinue diversity, equity, and inclusion (DEI) objectives.
With Target's shares plummeting by 30% this year, in stark contrast to Walmart's 18% increase, the retailer is under immense pressure to turnaround its business model. Despite lowering sales forecasts earlier in May, the company managed to slightly surpass quarterly earnings expectations in August, maintaining its financial outlook.
Upon his appointment as CEO, Fiddelke acknowledged the company's pressing need for rapid transformation, committing to enhancing product quality and integrating more technological advancements into Target's operations.
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