Target customers have altered their purchasing patterns in recent months, buying fewer home goods and apparel from the retailer. David Paul Morris/Bloomberg/Getty Images
As reported by CNN
Target announced reductions of about 1,000 employees in the corporate division and the closure of 800 open positions, which will amount to roughly 8% of the company’s global corporate staff.
On Thursday the company said that these cuts and changes set the course to become stronger, faster, and better prepared for the future, according to a letter to employees from Michael Fiddelke, the new Target CEO.
Context and Leadership
Fiddelke will lead the company next year, taking over from veteran CEO Brian Cornell, as had been reported previously in August.
The cuts come ahead of the critical holiday shopping season and signal anew that the Minneapolis-based company is facing challenges. Target is experiencing a drop in sales and backlash from supporters of inclusion policies due to the scrapping of parts of DEI programs.
The decision to pause some initiatives drew discontent among some advocates of diversity policies, who felt priorities had shifted. Previously Target supported DEI with an emphasis on inclusion.
The company emphasizes that cost reductions have affected sales, which had declined for three consecutive quarters.
Economic conditions and competition from Walmart, Amazon, and Costco have also affected Target.
Consumer purchasing activity has changed: demand for home goods and clothing at Target has declined.
Target shares (TGT) have fallen about 30% in 2025, placing the company among the worst-performing S&P 500 components of the year.
A Target spokesperson said the cuts were not aimed at reducing costs, but at repositioning the organization for faster, more adaptable decisions.
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