In a significant restructuring move, Target Corporation announced plans to lay off approximately 1,800 corporate employees in response to stagnant sales figures. This announcement follows the appointment of Michael Fiddelke as the new CEO, who will officially take the reins in 2026, succeeding Brian Cornell.
Fiddelke, who currently serves as the chief operating officer and has been with the company for over two decades, conveyed this decision in a memo sent to employees at the retailer’s headquarters in Minneapolis. According to reports from multiple outlets, including CNBC and CNN, this will be Target’s first major round of layoffs in the past decade. In the memo, Fiddelke emphasized that the complexity within the organization has hindered progress, stating, “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
The planned job cuts consist of around 1,000 layoffs and about 800 unfilled positions, representing an approximate 8% reduction in Target’s corporate workforce. Affected employees are expected to be notified on October 28. Target stated that workers impacted by this decision would continue to receive pay and benefits until January 3, 2026, alongside severance packages. Importantly, this restructuring will not affect roles within Target’s stores or supply chain.
Target has faced challenges, as reflected in its recent second-quarter earnings report, which indicated a decline in net sales to $25.2 billion, down by 0.9% compared to the previous year. The report also highlighted a 1.9% drop in comparable sales and a 19.4% decline in operating income year-over-year. Following earlier earnings reports, the retailer had projected a single-digit decline in annual sales, adjusting its earlier forecast for modest growth.
Acknowledging these challenges, Fiddelke emphasized the need for faster operational changes, outlining his commitment to returning the company to growth. He detailed three strategic adjustments for Target: enhancing merchandising authority, improving the guest experience, and advancing technology to better serve both employees and customers.
Fiddelke, who joined Target as an intern in 2003 and rose through the ranks to become the chief financial officer, is poised to take a leading role in shaping the future of the retailer. He is set to join the board of directors in February 2026, where he will continue to build on the foundation laid by Cornell, who has been the CEO since 2014 and will transition to the role of executive chair after his tenure.
As Target navigates these changes, the focus remains on revitalizing its operations amid pressures in the retail sector, as reflected in the significant downturn of its stock, which has dropped 65% since a peak in late 2021.
