Over the last year, Target has found itself at the center of intense backlash and boycotts due to a series of controversial business decisions that verge on the political. The fallout has taken a toll on the company’s finances, leading to several slowdowns in sales.
Now, the retailer is making another bold move, but this one could reshape its business entirely.
Target is eliminating 1,800 corporate roles, including 1,000 layoffs and 800 unfilled positions, according to a company memo sent to employees by COO, Michael Fiddelke.
This latest round of cuts represents around 8% of Target’s workforce and marks the largest reduction in a decade. The affected employees will be notified on October 28.
“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,” wrote Fiddelke in the memo published by CNBC.
This major restructuring comes as Fiddelke prepares to take over as Target’s CEO in February 2026. He has also led the Enterprise Acceleration Office, a multi-year effort to streamline cross-company processes and leverage technology and data to accelerate growth.
“I want to express my full confidence in his leadership and focus on driving improved results and sustainable growth,” said Target CEO Brian Cornell in a statement. “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.”
This initiative aims to reverse the slowdown Target has faced across multiple areas of its business over the past several quarters.
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In the second quarter of fiscal 2025, Target (TGT) reported a nearly 1% decline in net sales year-over-year, with comparable sales falling almost 2%. Its stock also dropped over 30% year-to-date as of October 24.
Despite multiple efforts to turn the business around, the retailer expects sales to continue declining for the full year of 2025.
The labor market has weakened as inflation, rising costs, and economic uncertainty have made job hunting increasingly difficult. For many workers, prolonged unemployment is no longer sustainable, adding to financial pressures.
According to the U.S. Bureau of Labor Statistics‘ Employment Situation update, 911,000 fewer jobs than expected were added in the 12 months through March 2025, signaling a notable slowdown.
In August, only 22,000 new non-farm payrolls were recorded, while the unemployment rate rose to 4.3%, the highest level in nearly four years.
“Although we are not seeing extensive layoffs, the hiring rate is quite low, so those who lose jobs or new entrants to the job market are having quite a tough time finding new positions. This will result in a higher unemployment rate over the course of the next year,” said The Mortgage Bankers Association Chief Economist Mike Fratantoni in a statement.
Research by Harvard Business School notes that relying on layoffs to mitigate temporary economic shifts is often unsuccessful and has hidden costs that make companies less profitable, innovative, and productive.
While Target hasn’t explicitly described the layoffs as a cost-cutting measure, many companies adopt similar strategies during times of financial strain to redirect resources toward more profitable areas. Given Target’s recent effort requiring a heavy investment and declining sales, the cuts could be connected to broader financial challenges.
Related: Starbucks makes changes to win customers back
This story was originally reported by TheStreet on Oct 25, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
