Target Corp. said Thursday it will cut about 1,800 corporate jobs as part of a restructuring aimed at simplifying decision-making and reviving growth after years of flat sales.
About 1,000 employees will receive layoff notices next week. Another 800 open positions will remain unfilled, a company spokesperson said. The reductions amount to roughly 8% of Target’s corporate workforce. They will primarily affect its Minneapolis headquarters, where most corporate employees are based.
“The truth is, the complexity we’ve created over time has been holding us back,” Chief Operating Officer Michael Fiddelke, who will become Target’s next CEO on Feb. 1, wrote in a memo to staff. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
Fiddelke, a 20-year Target veteran, described the layoffs as part of a broader push to “streamline operations” and accelerate innovation. He asked Minneapolis-area corporate employees to work remotely next week while teams finalize the restructuring.
The announcement is Target’s first major round of corporate layoffs in a decade. It comes at a pivotal moment for the retailer. Target has struggled to sustain momentum amid softening consumer demand, messy stores, and intensifying competition from Walmart and Amazon.
Target operates nearly 2,000 stores across the U.S. It was once hailed for its blend of affordable style and upscale presentation—a brand image that earned it the nickname “Tarzhay.” But in recent years, shoppers have complained that store conditions and merchandising quality have slipped. Inflation, higher interest rates, and shifting spending patterns have added to those challenges. Consumers are now prioritizing necessities over apparel and home décor.
In his memo, Fiddelke said the workforce reduction was a “necessary step in building the future of Target and enabling the progress and growth we all want to see.” He outlined a three-part plan. It includes restoring Target’s reputation as a design-driven retailer, ensuring shelves remain consistently stocked, and investing in technology to improve the customer experience.
“Adjusting our structure is one part of the work ahead of us,” Fiddelke wrote. “It will also require new behaviors and sharper priorities that strengthen our retail leadership in style and design and enable faster execution.”
The layoffs will not affect employees in Target’s stores, distribution centers, or other supply-chain facilities, according to the company. Corporate workers who are laid off will continue to receive pay and benefits through Jan. 3, along with severance packages.
Target has seen flat or declining comparable sales in nine of its last 11 quarters, with second-quarter earnings down 21% from a year ago.
Analysts have attributed Target’s challenges to both structural and economic issues. For example, Neil Saunders, managing director at GlobalData Retail, told CNBC that Target’s once-unique aesthetic has eroded. He explained that as the retailer lost its distinct identity, it has been forced to compete more directly on experience and execution, areas where rivals have maintained strength.
Target shares have fallen by more than 30% in 2025. Analysts warn the company’s focus on discretionary categories like apparel and décor makes it more vulnerable to downturns than grocery-centric rivals like Walmart.
Still, some analysts view the layoffs and leadership change as a necessary reset for the 123-year-old retailer. “It’s painful but overdue,” said Sucharita Kodali, retail analyst at Forrester Research. “Target needs to rediscover its identity and rebuild the operational muscle that once made it a trend-setter in the retail world.”
As Fiddelke prepares to take the helm in February, he urged employees to act swiftly and decisively: “Target has the talent and brand to lead again. Now is the moment to simplify, move with urgency, and restore our edge.”
