In a sweeping corporate shake-up, Target Corporation has announced that it will cut 1,800 corporate positions in an effort to streamline decision-making and rejuvenate its customer base. The move, representing nearly 8% of Target’s global corporate workforce, will see about 1,000 employees receive layoff notices next week, while another 800 currently vacant roles will be permanently eliminated, according to a company spokesperson. Most of the affected employees are based at Target’s Minneapolis headquarters.

Chief Operating Officer Michael Fiddelke, who is set to take over as CEO from February 1, shared the news with company staff in a memo on Thursday. He acknowledged the difficult decision but emphasized the need for structural simplification. “The truth is, the complexity we’ve created over time has been holding us back,” Fiddelke wrote, adding that “too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.” Employees in Minneapolis have been asked to work from home next week as the process unfolds.

Target’s ambitious restructuring comes as the retailer continues to lose ground to competitors like Walmart and Amazon. Once celebrated for its chic affordability, the brand — often nicknamed “Tarzhay” — has struggled in recent years due to inflation, sluggish discretionary spending, and complaints from customers about disorganized stores. In its latest quarterly report, Target revealed a 1.9% drop in comparable sales and a 21% decline in net income.

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Fiddelke has identified three key priorities for his incoming tenure: reviving Target’s merchandising leadership, enhancing the customer shopping experience, and boosting technological investment. While the job cuts mark a tough chapter for the company, Fiddelke described them as crucial for building “the future of Target” and enabling faster, smarter decision-making. The retailer confirmed that no layoffs will affect store staff or supply chain workers, and impacted corporate employees will receive wages, benefits, and severance packages through January 8.

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