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(NEXSTAR) — Target is gearing up to cut around 1,800 jobs within its corporate structure, as reported by The Wall Street Journal and CNBC on Thursday. This decision was communicated through a memo from Michael Fiddelke, who is set to become the new CEO.
This reduction will affect nearly 8% of the retail giant’s headquarters team in Minnesota. According to The Wall Street Journal, the plan involves laying off 1,000 employees globally and eliminating 800 unfilled roles. The majority of these changes, approximately 80%, will occur in the United States.
“The decisions that impact our team are among the most significant we make, and they are never made without careful consideration,” Fiddelke stated in the memo, as reported by CNBC. “I understand the real consequences this has on our team, and it will be challenging. However, it is a necessary measure to pave the way for Target’s future and facilitate the progress and growth we all aspire to achieve.”
- Target to cut about 1,800 corporate positions, reports say
Fiddelke also mentioned that the company plans to enhance technology and improve the “guest experience with every interaction” as part of the upcoming changes.
“Collectively, these adjustments set the foundation for our company to become stronger, faster, and better equipped to serve our guests and communities for many years ahead,” concluded Fiddelke, who is currently the chief operating officer and will officially take on his new role in February.
While Target did not immediately respond to Nexstar’s request for comment, a spokesperson told CNBC that roles in its store and supply chain are not impacted.
Target has seen a decline in sales since spiking in 2021, CNBC reports. The retailer, often one to launch a hiring surge for the holiday shopping season, has not offered figures on its hiring goal for this year.
Target will, however, offer current workers additional hours and then tap into a separate pool of workers — 43,000 — who pick up shifts. The Minneapolis-based company also hires seasonal workers across its nearly 2,000 stores and more than 60 distribution facilities to meet demand, it said.
The Associated Press contributed to this report.
