Target announced on Thursday that it will lay off 1,000 corporate employees and eliminate 800 open positions, a move that will affect approximately 8% of its global corporate workforce. This decision comes as part of a broader strategy aimed at positioning the retailer for a more resilient future, according to incoming CEO Michael Fiddelke, who is set to replace longtime CEO Brian Cornell next year.
These layoffs come as Target faces challenges, particularly as the crucial holiday shopping season approaches. The Minneapolis-based company has been experiencing declining sales, with three consecutive quarters of decreases. Factors contributing to this downturn include competitive pressures from retail giants such as Walmart, Amazon, and Costco, as well as changing consumer purchasing patterns that have led to reduced demand for certain product categories, including home goods and clothing.
Additionally, Target has drawn criticism for its recent decisions regarding diversity, equity, and inclusion (DEI) programs. The company had previously established a reputation as a strong advocate for DEI initiatives but chose to retreat from some of these programs, which upset many supporters and contributed to the sales slump.
Target’s stock has suffered, falling 30% in 2025, making it one of the worst performers in the S&P 500 this year. However, a spokesperson clarified that the layoffs were not aimed at cutting costs but rather intended to reorganize the company to enable faster decision-making.
As Target navigates these challenging circumstances, the leadership transition presents an opportunity for the company to recalibrate its strategies and potentially strengthen its market positioning in the future. In these complex times, adapting to changing consumer behaviors and maintaining a commitment to corporate values will be crucial for the company’s success.