Target is set to eliminate 1,800 corporate positions, which includes laying off 1,000 employees and not filling approximately 800 vacant roles. This move, representing about 8% of Target's corporate workforce, is part of a larger restructuring effort to boost growth amidst stagnant sales. Incoming CEO Michael Fiddelke, who will succeed Brian Cornell on February 1, 2026, announced the decision in a memo to the company's headquarters staff.
Fiddelke, currently serving as chief operating officer, emphasized the need to simplify operations and accelerate progress. He stated that the company's complexity has led to slow decision-making and hindered innovation. According to Fiddelke, these cuts are a "necessary step in building the future of Target and enabling the progress and growth we all want to see".
The layoffs will not impact store or supply chain employees. Affected corporate employees will be notified on Tuesday and will receive pay and benefits until January 3, along with severance packages. Target has asked all U.S. corporate staff to work remotely next week.
This restructuring marks the first major round of layoffs in a decade for the Minneapolis-based retailer. Target has struggled with declining sales and expects annual sales to decline this year. The company's stock has dropped 30% in 2025, making it among the worst-performing companies in the S&P 500.
Several factors have contributed to Target's challenges, including rising inflation, backlash from abandoning certain diversity programs, and ongoing cost challenges from tariffs. Customers have also shifted their spending habits, purchasing fewer home goods and clothing items.
Fiddelke has identified three priorities as he transitions to CEO: merchandise selection and display, enhancing customer experience by maintaining well-stocked shelves and clean stores, and investing in technology. He has been leading the Enterprise Acceleration Office, an initiative aimed at simplifying operations, adopting new technologies, and accelerating growth.
The leadership transition occurs as Target aims to regain momentum after several quarters of inconsistent performance. The company is focusing on value offerings and improving its supply chain efficiency to compete with rivals like Walmart and Amazon.
Some analysts suggest that Target needs more than just operational precision and should focus on building emotional connections with customers. Others believe that the company's board is betting that its current strategy will work with better execution.
Brian Cornell's departure follows 11 years as Target's CEO, during which he guided the company through significant changes. He will transition to the role of executive chair of Target's board of directors.
