Target Plans Largest Corporate Layoffs in Decade to Boost Efficiency Amid Stagnant Sales

Target is undergoing its largest corporate workforce reduction in a decade, cutting about 8% of its headquarters staff—approximately 1,800 roles—as part of a strategic move to improve operational efficiency and respond to stagnant sales. Incoming CEO Michael Fiddelke cited organizational complexity and overlapping work slowing decision-making as key reasons for the layoffs, emphasizing a refocus on core strengths and faster execution to regain momentum. Despite recent initiatives like new partnerships and national product launches, Target's share price has declined nearly 29% year-to-date, reflecting market skepticism about its ability to overcome competitive and revenue challenges. The company operates over 1,900 stores across the U.S., with annual revenue exceeding $100 billion, but faces declining margins and financial metrics indicating some operational stress. These layoffs align with broader trends in the U.S. labor market, including slower hiring and increased productivity demands driven by technology shifts. Fiddelke views the workforce reduction as a necessary step to build the future of Target and enable long-term progress and growth.