Target Corp. is eliminating about 1,800 corporate positions-its largest round of layoffs in a decade-as the retailer battles stagnant sales, shifting consumer habits, and backlash over its retreat from diversity programs. The job cuts, announced Thursday, include roughly 1,000 current layoffs and 800 unfilled positions, amounting to about 8% of Target's global corporate workforce.
Incoming CEO Michael Fiddelke informed employees of the decision in a memo, calling it a painful but necessary step to "move faster and simplify how we work to drive Target's next chapter of growth." Fiddelke, who currently serves as chief operating officer, will succeed longtime CEO Brian Cornell on February 1.
"The truth is, the complexity we've created over time has been holding us back," Fiddelke said in the memo. "Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life." He added that the restructuring "will help Target make urgent changes," positioning the company to be "stronger, faster and better positioned to serve guests and communities for many years to come."
The layoffs, which affect headquarters staff but exclude store and supply chain workers, come just weeks before the critical holiday shopping season. A Target spokesperson said affected employees will receive pay and benefits until January 3, along with severance packages.
Target's decision marks its first major workforce reduction since 2015 and underscores deepening challenges at the Minneapolis-based retailer. Sales have declined for three consecutive quarters as the company struggles to attract shoppers amid inflation pressures and growing competition from Walmart, Amazon, and Costco. Customers have scaled back spending on discretionary categories such as apparel and home goods-segments that account for roughly half of Target's revenue, compared with about 40% at Walmart, according to GlobalData Retail.
The retailer has also faced reputational turbulence following its pullback from diversity, equity, and inclusion (DEI) initiatives earlier this year. The move alienated supporters who viewed Target as a corporate leader in inclusive branding, and internal executives later acknowledged the backlash weighed on sales.
Target's (TGT) stock has fallen 30% in 2025 and is down 41% over the past five years, making it one of the S&P 500's worst performers this year. By contrast, Walmart's shares have climbed 123% during the same period.
Fiddelke has overseen the company's Enterprise Acceleration Office since May, an initiative designed to modernize Target's structure and use technology to speed decision-making. Thursday's announcement reflects the next phase of that plan, which includes collapsing management layers, reassigning resources, and focusing more heavily on merchandising authority and guest experience.
