Over the past year, Target has found itself at the center of intense backlash and boycotts over a series of controversial business decisions that border on the political. The consequences have taken their toll on the company’s finances, causing several slowdowns in sales.
Now, the retailer is taking another bold step, but this one could reshape its business entirely.
Target is eliminating 1,800 corporate positions, including 1,000 layoffs and 800 vacant positions, according to a company memo sent to employees by Chief Operating Officer Michael Fiddelke.
This latest round of cuts represents about 8% of Target’s workforce and marks the largest reduction in a decade. Affected employees will be notified on October 28.
“The truth is that the complexity we have created over time has been holding us back. Too many layers and overlapping work have slowed down decisions, making it harder to bring ideas to life,” Fiddelke wrote in the memo published by CNBC.
Target announces its largest round of corporate layoffs in more than a decade amid financial difficulties.Shutterstock
This major restructuring comes as Fiddelke prepares to take over as CEO of Target in February 2026. He also led the Office of Business Acceleration, a multi-year effort to streamline cross-company processes and leverage technology and data to accelerate growth.
“I want to express my full confidence in his leadership and focus on driving better results and sustainable growth,” Target CEO Brian Cornell said in a statement. “He has contributed significantly during times of change and played a critical role in establishing differentiated capabilities that will continue to drive Target forward. Michael brings a deep understanding of our business and a genuine commitment to accelerating our progress.”
This initiative aims to reverse the slowdown Target has faced in multiple areas of its business over the past few quarters.
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In the second quarter of fiscal 2025, Target (TGT) reported a nearly 1% decline in net sales year over year, and comparable sales fell nearly 2%. Its shares are also down more than 30% so far this year through October 24.
Despite multiple efforts to improve the business, the retailer expects sales to continue declining throughout 2025.
The labor market has weakened as inflation, rising costs and economic uncertainty have made it increasingly difficult to find a job. For many workers, prolonged unemployment is no longer sustainable, increasing financial pressures.
According to the U.S. Bureau of Labor Statistics’ employment status update, 911,000 fewer jobs were added than expected in the 12 months through March 2025, indicating a notable slowdown.
In August, only 22,000 new nonfarm payrolls were recorded, while the unemployment rate rose to 4.3%, the highest level in almost four years.
“While we are not seeing widespread layoffs, the hiring rate is quite low, so those losing their jobs or new entrants to the labor market are having a fairly difficult time finding new positions. This will result in a higher unemployment rate over the course of next year,” Mortgage Bankers Association Chief Economist Mike Fratantoni said in a statement.
Research by Harvard Business School notes that relying on layoffs to mitigate temporary economic changes is often unsuccessful and has hidden costs that make companies less profitable, innovative and productive.
While Target has not explicitly described layoffs as a cost-cutting measure, many companies adopt similar strategies in times of financial stress to redirect resources to more profitable areas. Given Target’s recent effort requiring heavy investment and declining sales, the cuts could be related to broader financial challenges.
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This story was originally reported by TheStreet on October 25, 2025, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.