Like many retailers, Target is struggling with the effects of online shopping, economic angst, and other consumer trends.
Now, the massive retailer has announced that it will eliminate 1,800 jobs, according to the AP. In August, Target announced in an earnings report that its sales were showing signs of recovery, although it anticipated a “low single digit decline in sales,” according to the report. According to AP:
- The layoffs include 1,000 jobs where people will be laid off. The layoff notices will go out on the week of October 27.
- The other 800 jobs are vacant positions that will be eliminated.
- According to CNBC, that means Target is laying off 8% of it workforce.
The New CEO Said That Target Created a ‘Complexity’ That Is Holding the Company Back
Target’s new CEO sent out a message announcing the layoffs. Michael Fiddelke said Minneapolis office workers should work from home, AP reported. That’s the city where Target is headquartered.
“The truth is, the complexity we’ve created over time has been holding us back,” Fiddelke wrote, according to AP. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
It’s the company’s largest number of layoffs in a decade, according to CNBC.
The move came “after four years of roughly stagnant sales,” CNBC reported. According to CNBC, one issue Target is facing is the fact the retailer doesn’t sell groceries like competitors, such as Walmart. That makes it harder for Target to weather economic ups and downs, according to CNBC.
Target has 440,000 employees nationwide, Fast Company reported.
In its August 2025 earnings report, Target wrote that “Second quarter net sales were $25.2 billion, (0.9) percent lower than 2024, representing a nearly 2 percentage point improvement versus the first quarter.”
“All six core merchandising categories saw comparable sales improvements compared with the first quarter,” Target wrote. “Traffic and sales trends improved meaningfully compared with the first quarter, particularly in stores.”
Digital sales were up. “Digital comparable sales grew 4.3 percent, reflecting more than 25% growth in same-day delivery powered by Target Circle 360 and continued growth in Drive Up,” the earnings report said.
“With the board’s unanimous decision to appoint Michael Fiddelke as Target’s next CEO, I want to express my full confidence in his leadership and focus on driving improved results and sustainable growth. He’s contributed meaningfully during times of change and played a critical role in establishing the 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,” said Brian Cornell, chair and chief executive officer of Target Corporation.
“Today, we also reported our second quarter earnings, which showed encouraging signs of recovery, including improved traffic and sales trends — particularly in our stores — and disciplined cost management in a challenging retail environment. As we enter the critical back-to-school and holiday seasons, our team remains focused on consistent execution and building momentum as we look ahead to the new year.”
