Target To Layoff 1,000 Employees As Incoming CEO Cites ‘Too Many Layers’ Slowing Growth | Business News

Target store (Pexels/Representative Image)

Target Corp. is preparing to lay off around 1,000 employees and cut 800 unfilled positions as part of a sweeping restructuring plan aimed at reigniting growth after four years of stagnant sales, The Wall Street Journal reported on Thursday. The move marks the Minneapolis-based retailer’s first major job reduction in a decade.

Incoming CEO Michael Fiddelke announced the decision in an internal memo, saying affected employees would be notified on Tuesday. “The complexity we’ve created over time has been holding us back,” he wrote. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”

As part of the restructuring, all US corporate employees have been asked to work remotely next week while the company finalises its reorganisation. The layoffs represent about 8% of Target’s corporate workforce, according to the WSJ report.

Target has been grappling with sluggish consumer demand and inventory missteps in recent years. The company has also drawn attention for scaling back its diversity, equity, and inclusion (DEI) initiatives — a move that has sparked internal and public criticism.

As of February 1, 2025, Target employed roughly 440,000 people. Its shares rose marginally—less than 1%—in extended trading on Thursday in New York, Hindustan Times reported.

The job cuts come amid a broader wave of layoffs across U.S. industries, including media, retail, and technology, as companies tighten costs and streamline operations.

Who is Michael Fiddelke?

Michael Fiddelke, who joined Target in 2003 as an intern, has held leadership roles across finance, merchandising, HR, and operations. Currently serving as Chief Operating Officer, he is slated to become Chief Executive Officer and join the company’s Board of Directors on February 1, 2026.