Target Trims Workforce by 500 to Streamline Operations and Drive Performance Recovery

Stock News
Feb 10

Target Corporation is eliminating approximately 500 positions to simplify its operational processes, with the company stating the move will enhance the in-store customer experience. In an internal memo released on Monday, Adrienne Costanzo, Target's President of Stores, and Gretchen McCarthy, Chief Supply Chain and Logistics Officer, indicated that the company aims to "streamline the field leadership structure, further empower store directors, and better meet guest needs." The memo revealed that the adjustments will cut 400 positions within the supply chain segment, with the savings being redirected towards increased staffing in stores. A separate internal document disclosed that the stores support team will also see a reduction of approximately 100 roles, affecting positions such as regional senior directors, HR business partners, and food service coordinators. A spokesperson for Target declined to comment. Based in Minneapolis, Target is under the leadership of its new CEO, Michael Fiddelke, who is spearheading a push for a performance turnaround. A core objective is reversing a trend of sluggish sales, with improving the in-store experience being a top priority. Recently, Target has focused on reducing customer wait times, ensuring product availability across its roughly 2,000 U.S. stores, and instructing store employees to proactively smile, make eye contact, and greet customers. As of Monday, Target's stock had declined approximately 12% over the past 12 months. Other reform goals for the company include utilizing technology more efficiently, optimizing product assortment, and re-emphasizing its fashion positioning. Last week, during his first company-wide meeting as CEO, Fiddelke acknowledged that Target has lost some trust from both customers and employees and pledged to rebuild those bridges. Last year, Target eliminated about 1,800 corporate jobs, marking the company's first major organizational restructuring in a decade.

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