Beth M. Jacob has stepped down from her position as Chief Information Officer at Target, according to a statement from the retailer. The announcement comes on the heels of Target unveiling changes in its information security and compliance division following the substantial data breach that took place in Q4 2013.
Target is searching for an interim CIO who is expected to help guide the retailer through the transition, which includes the implementation of smart card technology. Chip-enabled smart-card technology is expected to be rolled out in all store card readers across the U.S. by Q1 2015. The project is anticipated to cost approximately $100 million.
Two new positions also have been created in an effort to better delegate security tasks: the Chief Information Security Officer and the Chief Compliance Officer.
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“Before the overhaul, information security functions were split among a variety of executives,” the company said in a statement. “The new Chief Information Security Officer will centralize those responsibilities.”
Target emphasized that Jacob’s resignation was her decision, but analysts believe that Jacob, who served as CIO since 2008, came under fire for implementing technology involved in the breach.
“Target has been obviously impacted,” said Walter Loeb, a New York-based independent retail consultant, in an article from The Associated Press. “People are questioning Target’s security. And she was the fall guy.”
The impact of the data breach was undoubtedly felt; Target recently announced that it experienced a 46% drop in profits during Q4 2013.
“Results clearly softened following our December announcement of a data breach,” said Target CEO Gregg Steinhafel. “As we plan for the new fiscal year, we will continue to work tirelessly to win back the confidence of our guests and deliver irresistible merchandise and offers, and we are encouraged that sales trends have improved in recent weeks.”
