Target Announces Massive Layoffs to Simplify Global Corporate Structure

Target announces 1,000 layoffs

800 corporate vacancies eliminated

CEO Fiddelke aims to simplify structure

According to the EFE News Agency, U.S. retail giant Target has announced one of the largest corporate workforce reductions in its history — cutting 1,000 jobs and removing 800 unfilled positions as part of a global restructuring plan.

The move affects mainly corporate and administrative employees in the United States and represents an 8% reduction in Target’s global workforce.

The decision comes after several consecutive quarters of declining sales and profits, as the company seeks to streamline operations and regain its footing in a fiercely competitive retail environment.

“We must eliminate duplication, accelerate decisions, and focus on what truly drives growth,” wrote CEO Michael Fiddelke in an internal email to staff, obtained by The Wall Street Journal.

Target Restructuring to Simplify Corporate Operations

Breaking: Target plans to lay off around 1,000 corporate workers and eliminate 800 open roles https://t.co/BFt7EI3gM3

— The Wall Street Journal (@WSJ) October 23, 2025

Fiddelke, who became CEO in September after serving as Chief Operating Officer, acknowledged that Target’s organization had become “too layered and slow-moving.”

The new structure aims to reduce overlapping responsibilities, improve efficiency, and strengthen coordination between teams.

According to the memo, the restructuring will be formalized next Tuesday, when employees will be notified individually of their employment status.

Corporate workers were asked to work remotely next week as part of the transition period.

Target Layoffs Focused on Middle Management and Leadership Levels

Target Announces Massive Layoffs to Simplify Global Corporate Structure – PHOTO: SHUTTERSTOCK

The layoffs will primarily impact mid-level and senior management, with the goal of creating a leaner, more agile organization.

Affected employees will continue receiving pay through January 2026 and will be offered severance packages and career transition support, according to Target’s official statement.

The company described the move as a strategic decision to “focus on key priorities” — including:

Regaining leadership in style and design retail segments.

Enhancing in-store customer experience.

Expanding investment in technology and digital transformation.

Target emphasized that these actions are essential to optimize internal processes and boost responsiveness in an evolving retail landscape.

Falling Sales and Market Pressure

Photo: Shutterstock

The restructuring follows a challenging quarter for Target, which reported operating income of $1.3 billion, down 19% compared to the previous year.

Overall revenue fell slightly — less than 1% to $25.2 billion — but in-store traffic declined significantly, reflecting a broader slowdown in U.S. retail spending.

Online sales, however, rose by 4%, a positive signal that may shape Target’s long-term digital strategy.

The news of mass layoffs triggered a 10% drop in Target’s stock, which had already been underperforming since the second quarter of 2025.

Competition and Controversy

Target continues to face mounting pressure from Walmart, which remains the largest retailer in the world and a key competitor in both pricing and logistics.

The company has also drawn criticism for rolling back its Diversity, Equity, and Inclusion (DEI) programs, a move intended to align with Trump administration policies, which sparked boycotts and backlash among some customers.

Additionally, the combination of high tariffs, rising operating costs, and lower household spending has squeezed margins across the retail sector.

Despite these challenges, Fiddelke remains optimistic: “Target maintains a solid foundation,” he stated, emphasizing that the restructuring will help focus resources on innovation and customer experience, positioning the company for long-term growth.