In a significant move, Target announced plans to lay off 1,000 corporate employees and close 800 open roles, representing approximately 8% of its global corporate workforce. The decision was communicated to employees via an email from incoming CEO Michael Fiddelke, who emphasized that these changes are intended to position the company for a stronger and more agile future.
Fiddelke, who is set to succeed long-time CEO Brian Cornell next year, outlined the layoffs as part of a broader strategy to enhance Target’s operational efficiency amid ongoing challenges. The company has been grappling with declining sales, stated to have fallen for three consecutive quarters, and facing intensified competition from major retailers such as Walmart, Amazon, and Costco.
This decision comes during a critical period leading up to the holiday shopping season, raising concerns about the potential impact on both employees and customers. The layoffs follow a turbulent period for the company, which has experienced backlash over its recent changes to diversity, equity, and inclusion (DEI) initiatives—programs that had previously bolstered Target’s reputation as a corporate supporter of such values. The abrupt end to some of these initiatives has angered advocates who felt the decision blindsided them and diminished the company’s commitment to these principles.
Target’s sales struggles have been compounded by shifting consumer habits, with customers reportedly reducing their purchases of home goods and clothing—a core part of the retailer’s offering. As a result, the company’s stock has suffered, plummeting by 30% in 2025, and earning it a place among the worst-performing entities in the S&P 500 this year.
In response to inquiries about the reasons for the layoffs, a Target spokesperson clarified that this move was not primarily motivated by cost-cutting. Instead, it was intended to “rewire” the organization, allowing for swifter decision-making processes to adapt to rapidly changing market dynamics. As the company navigates these tumultuous waters, it remains to be seen how these measures will affect its long-term trajectory.
