Target announced on Thursday that it will eliminate approximately 1,800 corporate positions as part of a strategy to streamline operations and enhance its customer base. The layoffs are expected to impact about 1,000 employees who will receive notices next week, along with the elimination of around 800 vacant positions. This reduction accounts for roughly 8% of Target's global corporate workforce, primarily affecting staff at its Minneapolis headquarters.

Michael Fiddelke, the Chief Operating Officer who will assume the role of CEO on February 1, communicated the decision in a memo to employees. He indicated that more details would be shared on Tuesday and requested that Minneapolis employees work from home next week. Fiddelke stated, "The truth is, the complexity we’ve created over time has been holding us back. Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life."

Target, which operates about 1,980 stores across the United States, has faced increasing competition from Walmart and Amazon. The company has struggled to maintain its market position as inflation has led consumers to reduce discretionary spending. Customers have expressed dissatisfaction with the state of stores, noting disorganization and a lack of merchandise that aligns with the retailer's upscale yet budget-friendly image, often referred to humorously as "Tarzhay."

In August, Fiddelke outlined three key priorities for his upcoming tenure as CEO: restoring Target's reputation for merchandise selection and display, enhancing the customer experience by ensuring well-stocked and clean stores, and investing in technology. He reiterated these goals in his recent message, describing the layoffs as a necessary step toward building a stronger future for Target. "Adjusting our structure is one part of the work ahead of us. It will also require new behaviors and sharper priorities that strengthen our retail leadership in style and design and enable faster execution," he wrote.

Target has reported stagnant or declining comparable sales in nine of the last eleven quarters. In its most recent report from August, the company noted a 1.9% decrease in comparable sales for the second quarter, alongside a 21% drop in net income. The layoffs will not affect store employees or those working in sorting, distribution, and other supply chain roles. A company spokesperson confirmed that affected corporate employees will receive pay and benefits until January 8, along with severance packages.