Is Target's Plan to Eliminate 1,800 Jobs Enough to Reinvigorate the Struggling Retailer?
- Target Corp. plans to cut 1,800 corporate roles (8% of headquarters staff) under new CEO Michael Fiddelke to address operational inefficiencies and stagnant sales. - The restructuring targets 1,000 current employees and 800 open positions, focusing on U.S. managerial roles, as Fiddelke aims to streamline operations and reposition the retailer. - Analysts question the strategy’s effectiveness, citing unresolved challenges like shifting consumer preferences and economic pressures, despite cost-cutting effo
Target Corp. (TGT) is set to undergo significant organizational changes under its incoming CEO, Michael Fiddelke, who has announced plans to reduce its global corporate workforce by about 1,800 positions—representing 8% of its headquarters staff—in an effort to tackle inefficiencies and stagnant sales, as reported by
Fiddelke, who has been with Target for two decades, will take over as CEO in February 2026, following Brian Cornell’s tenure. In his memo, he pointed out that duplicated responsibilities and too many layers of decision-making have slowed Target’s ability to respond to industry challenges, such as increased tariffs, more cautious consumer spending, and competition from Walmart (WMT), according to Morningstar. Some analysts remain doubtful, suggesting that the leadership transition does not signal a substantial change in direction and may not resolve the broader issues impacting Target’s sales, MarketWatch reported.
This restructuring is part of Fiddelke’s larger plan to simplify operations and reestablish
Investors responded with caution to the announcement. Target’s stock increased by 0.4% in after-hours trading following the Journal’s initial coverage, but uncertainty about the company’s next steps kept broader investor optimism in check. The restructuring comes as Target faces ongoing sluggish comparable sales, leading shareholders to push for cost-saving actions to boost profits, Investing.com reported.
Although Fiddelke’s restructuring highlights a commitment to improving operational efficiency, analysts warn that deeper issues—like evolving consumer behavior and economic challenges—are still unresolved, according to MarketWatch. The effectiveness of this strategy will rely on Target’s ability to cut costs while maintaining its competitive position in a crowded retail market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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