Target is set to lay off about 1,800 employees, roughly 8% of its corporate workforce, in its first major downsizing in 10 years.
The announcement was made Thursday in a memo from incoming CEO Michael Fiddelke, who currently serves as the company’s chief operating officer.
The layoffs will include 1,000 current employees losing their jobs and 800 open positions that will remain unfilled.
The cost-cutting move comes as the retailer struggles with declining sales, lower store traffic, and operational challenges.
Target is preparing for a leadership transition, with Fiddelke taking over as CEO in February.
He will face the tough task of reviving growth and rebuilding the company’s brand amid growing competition and shifting consumer habits.
The retailer’s performance has weakened significantly over the past two years. Sales are expected to decline this year, and its stock has plunged 65% since its peak in late 2021.
The layoffs mark a turning point for Target as it tries to stabilize its business and regain customer confidence.