Target Announces 1,800 Corporate Job Cuts to Streamline Operations

Authors: Lisa Leff

Published: 3:09 PM GMT+3, October 24, 2025

Updated: 5:40 PM EAT, October 24, 2025

MINNEAPOLIS — Target Corporation announced on Thursday, October 23, 2025, the elimination of approximately 1,800 corporate positions as part of a strategic effort to streamline decision-making and revitalize its brand. The layoffs, affecting about 8% of Target’s global corporate workforce, include 1,000 employee terminations and the elimination of 800 vacant roles, primarily at the company’s Minneapolis headquarters, according to a spokesperson.

Restructuring Target for Recovery

Chief Operating Officer Michael Fiddelke, who will assume the role of CEO on February 1, 2026, communicated the decision in a note to employees, citing excessive organizational complexity as a barrier to progress. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life,” Fiddelke wrote. He asked Minneapolis-based employees to work from home next week, with further details to be provided on Tuesday.

The retailer, operating nearly 1,980 U.S. stores, has struggled to maintain its competitive edge against rivals like Walmart and Amazon, particularly as inflation has curbed discretionary spending. Customers have criticized Target for disorganized stores and merchandise that no longer aligns with its “Tarzhay” reputation for affordable, stylish products. Fiddelke emphasized three priorities: enhancing merchandise selection, improving customer experience through well-stocked and clean stores, and investing in technology.

Financial Context

Target has faced challenges with flat or declining comparable sales in nine of the past 11 quarters. In its second quarter of 2025, comparable sales dropped 1.9%, and net income fell 21%. As shown in the finance card above, Target’s stock (TGT) closed at $94.179 on October 24, 2025, reflecting a slight decline from the previous day’s close of $94.25, with a year-to-date high of $158.42 and a low of $85.36. These financial pressures underscore the urgency of the restructuring.

Employee Support and Scope

The layoffs will not impact store employees or workers in Target’s sorting, distribution, or supply chain facilities. Affected corporate employees will receive pay and benefits through January 8, 2026, along with severance packages, the spokesperson confirmed.

Fiddelke described the job cuts as a “necessary step” to rebuild Target’s future, emphasizing that the restructuring is part of broader efforts to sharpen retail leadership in style, design, and execution. The company aims to regain its position as a customer favorite while navigating economic uncertainties and competitive challenges.

Join Our Community of 60,000 Innovators

Stay updated on the latest news and insights!

Instagram: Instagram.com/aspirescapital

Subscribe for More Updates: aspirescapital.com/signup