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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] MINNEAPOLIS, U.S. – October 23, 2025 (local time) –
U.S. retail giant Target Corp. announced plans to lay off approximately 1,800 corporate employees, or about 8% of its global headquarters workforce, as part of an ongoing effort to streamline operations and accelerate growth.
According to CNBC, Michael Fiddelke, Target’s incoming Chief Executive Officer (CEO), disclosed the restructuring plan in an internal memo to employees. Fiddelke described the layoffs as “an important step to accelerate how we work,” emphasizing the need for a more efficient corporate structure ahead of his official appointment as CEO in February 2025.
A company spokesperson clarified that the job cuts include about 1,000 full-time positions and 800 unfilled vacancies, and will not affect store or supply chain employees. Individual notifications will be delivered on October 28.
The restructuring follows months of weak sales performance and comes shortly before a leadership transition. Fiddelke, currently Chief Operating Officer (COO) and former Chief Financial Officer (CFO), has been overseeing Target’s Enterprise Acceleration Office, launched in May to drive organizational simplification, technology innovation, and faster execution.
Target has struggled with declining foot traffic, inventory imbalances, and soft consumer spending over the past several years. Analysts project that full-year sales will fall, continuing a multi-year downward trend. The company’s stock has plummeted about 65% since its peak in late 2021.
CNBC noted that compared with rivals such as Walmart, Target’s lower exposure to essential goods and groceries makes it more vulnerable to economic downturns and weakening consumer sentiment. Over the past five years, Walmart shares have risen about 123%, while Target shares have fallen roughly 41%.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
