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The Target logo is displayed outside one of their stores on August 2, 2025 in San Diego, California.
Kevin Carter | Getty Images
goal The U.S. retailer said Thursday it will cut 1,800 jobs at the company as the retailer tries to return to growth after four years of nearly stagnant sales.
It marks the first major round of layoffs in a decade for the Minneapolis-based retailer. It announced the layoffs in a memo sent by Target’s incoming CEO, Michael Fedelke, to employees at its headquarters.
A company spokesperson said the canceled roles are a combination of about 1,000 employees who have been laid off and about 800 positions that will no longer be filled. Together, they represent a roughly 8% reduction in Target’s workforce, according to the memo. Affected employees will be notified on Tuesday.
The retailer announced the cuts as it approaches a leadership change.
Target in August hired Fiddelke, currently its chief operating officer and former CFO, to succeed longtime leader Brian Cornell. He will take over leadership on February 1.
Fedelke also oversaw the Office of Enterprise Acceleration, an effort announced in May, which looked for ways to streamline company operations, use technology in new ways and accelerate Target’s growth.
The retailer is facing a decline in sales and said it expects annual sales to decline this year. Target shares have fallen about 65% since their all-time high in late 2021.
In a memo sent Thursday to employees at Target’s headquarters, Fedelke said the staff cuts would help Target move with urgency.
“The reality is that the complexity we have created over time is holding us back,” he said in the memo. “Too many layers and overlapping work slowed down decision making, making it difficult to bring ideas to life.”
He said the cuts are difficult, but they are “a necessary step in building Target’s future and enabling the progress and growth we all want to see.”
Target employees affected by the layoffs will receive salaries and benefits through Jan. 3, as well as severance packages, according to a company spokesperson. No roles in stores or in Target’s supply chain were affected by the cuts, a company spokesperson said.
Read the full note from Fiddelke:
a team,
This spring we launched our enterprise acceleration effort with a clear ambition: move faster and simplify how we work to drive the next chapter of growth for Target. The truth is that the complexity we created over time was holding us back. Too many layers and overlapping work slowed down decision making, making it difficult to bring ideas to life.
On Tuesday, we will share the changes made to our headquarters structure as an important step in accelerating the way we work. This includes eliminating approximately 1,800 non-field positions – approximately 8% of our global headquarters team. As we make these changes, I’m asking everyone Members of the US headquarters team will be working from home next week. Target in India and our other global teams will follow their own in-office routines.
The decisions that affect our team are the most important decisions we make, and we never make them lightly. I know the true impact this is having on our team, and it’s going to be tough. It is a necessary step in building a future of purpose and enabling the progress and growth we all want to see.
Adjusting our structure is part of the work that lies ahead. It will also require new behaviors and clearer priorities that will strengthen our retail leadership in style and design and enable faster execution so we can:
- Leading with promotional authority;
- Elevating the guest experience with every interaction; and
- Accelerating technology to empower our team and delight our guests.
Collectively, these changes set the course for our company to become stronger, faster and better positioned to serve guests and communities for many years to come.
Michael
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