U.S. retail chain Target has announced it plans to cut around 500 jobs as CEO Michael Fiddelke, who took over the top position on 1 February, is aiming to return the retailer to profitability.
The job cuts, which include 400 distribution center jobs and another 100 jobs across its regional district level, were announced in an internal memo sent to employees on 9 February, per Fast Company, and were partly made to reallocate financial resources to boost the in-store customer experience.
The move does not affect store-level jobs, Target Chief Stores Officer Adrienne Costanzo and Chief Supply Chain and Logistics Officer Gretchen McCarthy confirmed in the memo.
With Fiddelke now at the helm, Target, which operates over 2,000 stores, is looking to shift resources from regional districts to adding store-level employees, as customers have made complaints about long checkout lines and more out-of-stock items, per Inc.
In addition to the cuts, Fiddelke also made leadership changes. Lisa Roath, who previously was Target’s chief merchandising officer of food, essentials, and beauty, was named COO.
In her new role, Roath will focus on “scaling Target's style and design focus across the full operation, improving speed, efficiency, and execution that elevates the shopping experience,” Target said.
Additionally, Cara Sylvester, former chief guest experience officer, was named as chief merchandising officer. Rick Gomez, meanwhile, who was Target’s chief commercial officer, will depart the chain, and Jill Sando, who has served as chief merchandising officer for apparel and accessories, will retire.
"It's the start of a new chapter for Target, and we're moving quickly to take action against our priorities that will drive growth within our business," Fiddelke said. "These leadership changes align the right talent and expertise with key roles and simplify our structure so we can advance our strategy with greater speed, clarity, and accountability."
As part of other initiatives to grow sales, the company said in January it expanded its wellness assortment portfolio by 30 percent with “thousands of new items and more exclusives than ever before.” Target also emphasized its relationship with meat and seafood e-commerce service ButcherBox, including its exclusive retail debut of 100 percent grass-fed beef options.
Target Meat and Seafood Director Josephine Theal separately announced in January that Target expanded its private-label seafood offerings via its Good & Gather Ocean Treasures line.
"We paved a way to bring the magic of Target to frozen seafood with private label innovation for kids,” she said. The “fun-shaped fish nuggets” are a value deal at USD 6.99 (EUR 5.90) for 20 pieces, she said.
