Minneapolis, Minnesota, U.S.A.-based retail chain Target said it is cutting 1,800 corporate jobs, following similar moves made by retailers Walmart and Kroger earlier this year.
The job cuts, announced via a memo from the company’s incoming CEO Michael Fiddelke, represent around 8 percent of Target’s corporate workforce, per CNBC, which quoted a company spokesperson confirming the eliminated roles are a combination of about 1,000 employee layoffs and about 800 positions that will no longer be filled.
Fiddelke said in the memo that the cuts are difficult but “a necessary step in building the future of Target and enabling the progress and growth we all want to see.”
“The truth is, the complexity we’ve created over time has been holding us back. Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life,” he said.
The operator of nearly 2,000 stores is attempting to rebound from declining store traffic, inventory troubles, and customer backlash, per CNBC, and has said it expects annual sales to decline this year.
Its share value has fallen by 65 percent since its all-time high in late 2021.
Fellow retailer Kroger, based in Cincinnati, Ohio, U.S.A., similarly announced in late August it would lay off around 1,000 corporate employees, which itself followed an announcement in July that the operator of nearly 2,800 grocery stores planned to close around 60 stores over the next 18 months.
"In the past few months, we have all looked for ways to simplify the organization, shift resources closer to our customers, and focus on work that creates the most value," Kroger Interim CEO Ron Sargent said at the time.
Kroger is also hiring fewer employees for this year’s holiday season, according to Supermarket News. The firm plans to hire more than 18,000 workers this holiday season compared to 25,000 employees for the 2024 holiday season.
