Target is laying off about 1,000 corporate employees and closing 800 open positions, amounting to roughly eight per cent of its global corporate workforce, as the company faces falling sales and intensifying competition.
Incoming CEO Michael Fiddelke announced the move in an email to employees Thursday, calling it a difficult but necessary step to strengthen the company’s long-term position. “These changes set the course for our company to be stronger, faster, and better positioned for the future,” he wrote. Fiddelke is set to take over from longtime CEO Brian Cornell next year.
The job cuts come just weeks before the crucial holiday shopping season and mark another sign of turbulence for the Minneapolis-based retailer. Target has been grappling with three consecutive quarters of declining sales and lingering backlash over its decision to scale back diversity, equity, and inclusion (DEI) programs — a reversal that alienated some customers and employees who once viewed the brand as a DEI leader.
In addition to reputational challenges, Target continues to face fierce competition from retail giants like Walmart, Amazon, and Costco, while changing consumer spending patterns have hurt sales of home goods and apparel.
The company’s stock has fallen about 30 per cent in 2025, placing it among the worst-performing firms in the S&P 500 this year.
A Target spokesperson said the layoffs were not primarily a cost-cutting measure but part of a broader organizational overhaul aimed at speeding up decision-making and improving efficiency. “This is about creating a leaner, more agile Target that can adapt quickly to change,” the spokesperson said.
Despite the cuts, the company emphasized that stores and distribution operations will continue as normal as it works to stabilize performance heading into the holiday period.