(Nexstar) – Target is preparing to eliminate about 1,800 corporate positions, wall street journal And cnbc reported Thursday, citing an internal memo sent by incoming CEO Michael Fidelke.
The move will affect about 8% of the Minnesota-based retailer’s global headquarters team, the memo said. According to the Wall Street Journal, 1,000 global corporate employees will be laid off, while 800 vacant positions will be cut. The outlet reported that about 80% of the affected roles are in the US.
“Decisions that impact our team are the most important decisions we make, and we never take them lightly,” Fiedelke wrote in the memo obtained by CNBC. “I know this will have a real impact on our team, and it will be difficult. And, this is a necessary step to building the future of Target and enabling the growth and development we all want to see.”
Fidelke further said that other anticipated changes will include accelerating technology and enhancing “the guest experience with every interaction.”
Fidelke, the company’s chief operating officer until his promotion took effect in February, concluded, “Overall, these changes pave the way for our company to be stronger, faster and better positioned to serve guests and communities for many years to come.”
While Target did not immediately respond to Nexstar’s request for comment, a spokesperson told CNBC that roles in its stores and supply chain were not affected.
Target has seen sales decline after rising in 2021, CNBC reports. The retailer, which often initiates hiring increases for the holiday shopping season, did not offer figures on its hiring target for this year.
However, Target will offer current workers the extra hours and then join a separate pool of workers — 43,000 — who choose shifts. The Minneapolis-based company also hires seasonal workers at its nearly 2,000 stores and more than 60 distribution facilities to meet demand.
The Associated Press contributed to this report.
