Target Announces 1,800 Job Cuts Following Consecutive Earnings Dip

Target takes out the scissors. The U.S. department store chain has announced that it will eliminate 1,800 jobs, executing 1,000 layoffs and not filling another 800 vacant positions. This is approximately 8% of the corporate workforce of 22,000 employees. The decision comes after a period of falling sales, according to WWD.

The company has stated that it is a strategy to “return to growth” and said that “adjusting the headquarters structure is the first step in restructuring the organization,“ denying that it has to do with cost cutting. Those affected will receive their salaries until January 3.

The company has reportedly sent a statement to its employees justifying its decision on the grounds that “too many layers and overlapping tasks slow down decision-making”. In addition, it reportedly indicated that it will detail the changes in the corporate structure next week.

Michael Fiddelke has been appointed CEO, a position he will hold from February 1st, 2026

In August, Michael Fiddelke was appointed CEO, a position he will take up on February 1st, 2026. He will replace Brian Cornell, who becomes executive chairman of the company.

“These changes set the course to make our company stronger, faster and better positioned,“ Fiddelke argued. For their part, Target employees in India and other global teams will maintain their in-person work routines next week.

According to market sources, Target’s performance has been in a string of down years, showing an inability to grow revenue which, in turn, has eroded its profitability.