What's happened
As of late October 2025, Target announced plans to cut about 8% of its global corporate workforce, roughly 1,800 jobs, mainly at its Minneapolis headquarters. The restructuring aims to simplify management layers and accelerate decision-making amid stagnant sales and competitive pressures. The cuts exclude store employees and come as Target prepares for a leadership transition in February 2026.
What's behind the headline?
Simplifying Complexity to Regain Competitiveness
Target’s decision to cut 8% of its corporate workforce is a strategic move to address organizational complexity that has hindered agility and innovation. The company acknowledges that "too many layers and overlapping work have slowed decisions," which has contributed to its recent sales stagnation and loss of market share to Walmart and Amazon.
Leadership Transition as a Catalyst
The timing aligns with Michael Fiddelke’s upcoming CEO role, signaling a fresh start focused on operational efficiency and technology investment. This restructuring is not merely cost-cutting but a foundational step to "rewire" the company for faster execution and improved customer experience.
Broader Economic and Industry Pressures
Target’s challenges reflect wider retail sector headwinds, including inflation, tariffs, and shifting consumer spending habits. The exclusion of store-level layoffs suggests a focus on corporate agility rather than frontline cost reductions.
Forecast and Impact
This restructuring will likely improve Target’s decision-making speed and operational focus, positioning it better against competitors. However, the loss of 1,800 corporate jobs will have significant human and cultural impacts. The company’s success will depend on how effectively it balances cost efficiency with innovation and customer service improvements.
Relevance to Consumers and Investors
For consumers, the changes aim to enhance store experience and product selection. Investors should watch for how these moves affect Target’s financial performance and stock recovery in the coming quarters.
What the papers say
The New York Times’ Emmett Lindner highlights Target COO Michael Fiddelke’s memo emphasizing the need to reduce complexity and speed decision-making, noting that about 1,000 employees will be laid off with 800 vacant roles eliminated, primarily at corporate headquarters. Lindner quotes Fiddelke: "Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life."
AP News and The Independent corroborate these details, adding that store employees and supply chain workers are unaffected. The Independent provides additional context on Target’s sales struggles and leadership changes, noting the company’s nickname "Tarzhay" and its recent flat or declining comparable sales.
Business Insider UK’s Kelsey Vlamis reports on the internal memo and the rationale behind the cuts, emphasizing the goal to simplify workflows and accelerate growth. The Guardian and other sources focus on related corporate restructuring stories but do not cover Target directly.
Together, these sources paint a consistent picture of Target’s strategic workforce reduction as a necessary step to regain competitiveness amid economic and industry challenges.
How we got here
Target has faced sales stagnation and declining comparable sales over recent quarters, losing ground to rivals like Walmart and Amazon. The company’s complexity and overlapping roles have slowed decision-making. Incoming CEO Michael Fiddelke plans to streamline operations and improve customer experience. These layoffs follow broader economic pressures including tariffs and inflation impacting retail businesses.
Go deeper
- How will Target's layoffs affect its store operations?
- What are Michael Fiddelke's plans as the new CEO?
- How is Target addressing competition from Walmart and Amazon?
Common question
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Why is Target cutting 8% of its corporate staff now?
Target's recent announcement of cutting about 1,800 corporate roles, roughly 8% of its global headquarters staff, has raised many questions. This move is part of a strategic restructuring aimed at improving agility and decision-making amid ongoing sales challenges and industry shifts. But what exactly is behind these layoffs, and what do they mean for Target's future? Below, we explore the reasons behind the cuts, their impact, and what this signals for the retail giant.
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What’s the economic impact of corporate layoffs today?
Recent layoffs, like Target’s announcement to cut 8% of its corporate staff, are making headlines and raising questions about their broader economic effects. Are these layoffs signs of a struggling economy, or part of strategic restructuring? How do they influence industries, consumer confidence, and the overall job market? Below, we explore the key questions to understand what these layoffs mean for the economy right now.
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Why is Target restructuring now?
Target's recent decision to restructure comes amid a challenging retail environment marked by stagnant sales and economic pressures. Many wonder what’s driving this change and what it means for the company’s future. Below, we explore the reasons behind Target’s restructuring, its impact on employees, and what industry experts are saying about this move.
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Will Target's Restructuring Improve Its Sales and Industry Outlook?
Target is undergoing a significant restructuring, including layoffs and organizational changes, in response to stagnant sales and economic pressures. Many wonder if these moves will help the retail giant bounce back and what they mean for the broader retail industry. Below, we explore common questions about Target's strategy, industry trends, and what the future might hold for retail giants facing similar challenges.
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How Are Economic Pressures Affecting Big Retailers Like Target?
With inflation, tariffs, and shifting consumer habits, major retailers are feeling the squeeze. Companies like Target are restructuring and making tough decisions to stay afloat. Curious about what this means for shoppers and the retail landscape? Below, we answer key questions about how economic challenges are reshaping big retail brands today.
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Why Is Target Restructuring Now?
Target's recent decision to restructure and lay off around 1,800 employees has raised many questions. With sales stagnation, economic pressures, and leadership changes, many wonder what’s driving these moves and what they mean for the future of retail. Below, we explore the reasons behind Target's restructuring, how layoffs impact the company and its workers, and what this signals for the retail industry in 2025.
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Target Corporation is an American retail corporation. It is the 8th-largest retailer in the United States, and is a component of the S&P 500 Index.
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Brian C. Cornell (born 1959) is an American businessman who has been the chairman and chief executive officer (CEO) of Target Corporation since 2014. In August 2025, he announced that he would step down as CEO to Michael Fiddelke, COO effective February..