On October 23, 2025, Target, the Minneapolis-based retail giant known for its signature red bullseye, announced a sweeping round of corporate layoffs, sending ripples through its headquarters and raising questions about the company’s future direction. The company revealed plans to eliminate approximately 1,800 corporate positions—about 8% of its global corporate workforce—in a bid to streamline decision-making and reignite growth after several years of sales stagnation and intensifying competition from rivals like Walmart and Amazon.
According to FOX Business, the cuts are a mix of about 1,000 employees who will receive layoff notices on October 28, 2025, and roughly 800 vacant roles that will be permanently eliminated. The majority of those affected are based at Target’s Minneapolis headquarters, with about 80% of the cuts impacting U.S.-based staff. Notably, leadership positions were three times more likely to be targeted than other roles, underlining the company’s focus on flattening its management structure.
Michael Fiddelke, Target’s Chief Operating Officer and the incoming CEO set to take the helm on February 1, 2026, delivered the news in a memo to employees. The message, which was distributed company-wide, acknowledged the emotional toll of the decision while emphasizing the urgent need for change. "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," Fiddelke wrote, as reported by The New York Times and CNBC.
Fiddelke’s memo continued, "Adjusting our structure is one part of the work ahead of us. It will also require new behaviors and sharper priorities that strengthen our retail leadership in style and design and enable faster execution." He asked all U.S. headquarters employees to work from home during the week following the announcement, while Target’s international teams, including those in India, would continue with their usual in-office routines.
The layoffs, which mark Target’s first major round of corporate job cuts in a decade, arrive at a critical juncture for the retailer. Over the past four years, Target has struggled with declining store traffic, inventory snags, and a consumer backlash that has chipped away at its once-loyal customer base. According to Reuters, Target reported flat or declining comparable sales in nine of the last eleven quarters, with the most recent quarter seeing a 1.9% dip in sales at stores open at least a year and a 21% drop in net income. The company’s operating income for the quarter came in at $1.3 billion, down about 19.4% from the previous year, as noted by FOX Business.
Target’s woes are compounded by a shifting retail landscape. Unlike Walmart, which draws a significant portion of its revenue from groceries and household staples, Target relies heavily on discretionary items—about half of its sales come from such categories, compared to 40% at Walmart, according to GlobalData Retail estimates cited by CNBC. This reliance has made Target more vulnerable to economic headwinds, as inflation and changing consumer habits prompt shoppers to tighten their belts.
The difference in performance between the two retailers is stark. Walmart’s shares have soared 123% over the past five years, while Target’s have plummeted by 41% during the same period. Since its peak in late 2021, Target’s stock has fallen 65%, reflecting investor unease and the mounting pressure to turn things around.
In response, Target has been rolling out a series of initiatives under the leadership of Fiddelke, who has been with the company for over two decades. In May 2025, he launched the Enterprise Acceleration Office, a cross-functional effort aimed at simplifying operations, leveraging technology, and driving growth. This initiative has already delivered more than $2 billion in efficiencies, according to FOX Business, and is now being expanded as part of the restructuring.
Fiddelke’s vision for Target’s future is ambitious. He outlined three urgent priorities: reclaiming the company’s leadership in merchandising authority, elevating the guest experience through better-stocked and cleaner stores, and accelerating investments in technology to empower teams and delight customers. "To better serve our guests, we’re prioritizing the need to work faster and reduce the complexity that has been created over time. This is especially important against the backdrop of a rapidly changing business landscape," he said in his note to employees.
Importantly, Target has stressed that the cuts will not affect store employees or workers in its sorting, distribution, and supply chain operations. The focus, the company says, is squarely on corporate roles, particularly those that have contributed to what Fiddelke described as “too many layers and overlapping work.” Employees losing their jobs will receive pay and benefits until early January 2026, as well as severance packages. The company spokesperson emphasized to The New York Times that "we did not take these actions to save cost," but rather as a first step in making the organization more agile and responsive.
Target’s leadership transition comes at a time of both challenge and opportunity. Outgoing CEO Brian Cornell, who will move to the role of executive chairman in February, oversaw a period of rapid expansion and digital transformation but also faced the brunt of the recent downturn. Fiddelke, as his successor, inherits a company at a crossroads—one that must balance the need for efficiency with the imperative to restore its lost “Tarzhay” allure, as some longtime customers have affectionately dubbed the brand.
Industry analysts are watching closely to see whether Fiddelke’s restructuring will deliver the intended results. While some view the layoffs as a painful but necessary step to “rewire” the organization, others caution that deeper cultural and operational changes may be needed to win back shoppers and reignite growth. As Reuters noted, Target’s recent efforts to improve product selection and store presentation are promising, but the company faces an uphill battle in an environment where consumer loyalty is fickle and competition is fierce.
For the employees affected by the layoffs, the coming weeks will be difficult. Fiddelke acknowledged as much in his memo, writing, "Decisions that affect our team are the most significant ones we make, and we never make them lightly. I know the real impact this has on our team, and it will be difficult. And, it’s a necessary step in building the future of Target and enabling the progress and growth we all want to see."
As Target embarks on this new chapter, the stakes couldn’t be higher. With a new CEO, a leaner corporate structure, and a renewed focus on innovation and guest experience, the retailer is betting that it can reclaim its place as a leader in American retail. Whether these changes will be enough to restore its luster and win back customers remains to be seen, but one thing is clear: the company is not standing still.
