Target Corp., which has been struggling to achieve growth in a difficult economic environment, will cut 1,800 non-field jobs, amounting to approximately 8% of its global headquarters team, according to CNBC. The job cuts will be the first major layoffs at Target in a decade; employees will receive pay and benefits through Jan. 3, 2026, including severance packages.
Incoming CEO Michael Fiddelke shared a memo outlining the changes on Thursday, saying: “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.” Fiddelke was named to the top post at Target in August 2025 and will officially take the reins in February 2026 when longtime CEO Brian Cornell steps down.
The retailer’s Q2 financial results showed a 0.9% decrease in net sales for the period ending Aug. 2, 2025 compared to the same period the previous year, falling from $25.5 billion to $25.2 billion this year, while comparable sales declined 1.9%. In Q1, Target’s net sales dropped 2.8% compared to Q1 2024, to $23.8 billion, and comparable sales fell 3.8%.
In his memo, Fiddelke said: “Adjusting our structure is one part of the work ahead of us. It will also require new behaviors and sharper priorities that strengthen our retail leadership in style and design and enable faster execution so we can:
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- Lead with merchandising authority;
- Elevate the guest experience with every interaction; and
- Accelerate technology to enable our team and delight our guests.
