Target Corp. is implementing a significant restructuring initiative that includes the layoff of approximately 1,800 employees as part of a broader effort to address persistently stagnant sales. This development was first reported by The Wall Street Journal, citing sources familiar with the company’s plans. According to an internal memo from incoming CEO Michael Fiddelke, the reductions include about 1,000 current employee layoffs and the elimination of 800 unfilled positions. Collectively, these cuts represent roughly 8% of the retailer’s corporate workforce, though they will not affect store or supply chain positions. As of February 1, Target’s total employee count stood at approximately 440,000.

This corporate overhaul follows 11 consecutive quarters of weak or declining comparable sales, underscoring the urgency for transformational change within the organization. CNBC, citing a company spokesperson, reported that affected employees will be notified on Tuesday and will continue receiving pay and benefits until January 3, along with severance packages. In his memo, as quoted by CNBC, Fiddelke emphasized the need to simplify operations and remove bureaucratic hurdles within the company. He stated, “The truth is, the complexity we’ve created over time has been holding us back. Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.” He further acknowledged that while the layoffs are difficult, they are a necessary step toward building the future of Target and enabling the progress and growth the company aims to achieve.

Fiddelke brings two decades of extensive experience to his new leadership role, having served in multiple departments across finance, merchandising, human resources, and operations. His tenure as chief operating officer and chief financial officer saw him oversee major investments in key areas such as store expansion, supply chain modernization, digital transformation, and workforce development. Before joining Target, he worked at Deloitte and holds an MBA from Northwestern University’s Kellogg School of Management, along with a Bachelor of Science in industrial engineering from the University of Iowa.

As he steps into the top leadership position, Fiddelke has outlined three urgent strategic priorities designed to revitalize Target’s market performance. The first is reclaiming merchandising authority, which focuses on strengthening the company’s leadership in product selection and trend-setting within the competitive retail landscape. The second priority centers on enhancing the shopping experience by ensuring that store shelves remain consistently stocked and store environments are maintained with exceptional cleanliness, thereby improving overall customer satisfaction. Finally, Fiddelke intends to prioritize investments in technology, including modernizing in-store systems and upgrading supply chain infrastructure to boost efficiency and elevate service quality across all levels of operation.

Collectively, these strategic pillars are designed to position Target for sustainable growth, streamline its corporate structure, and restore consumer confidence in the brand’s long-term direction.