Target Cuts 1,800 Corporate Jobs as Incoming CEO Reshapes Strategy
As of October 23, 2025, Target announced 1,800 corporate layoffs, approximately 8% of its headquarters workforce. Incoming CEO Michael Fiddelke cited operational complexity and stagnant sales as key drivers for the cuts. The restructuring aims to streamline decision-making, improve profitability, and position Target for growth amid declining store traffic and a stock drop of 65% since late 2021.
Largest Corporate Layoffs in a Decade
Target has announced the elimination of 1,800 corporate roles, marking its most substantial workforce reduction in ten years. The cut represents roughly 8% of its corporate staff, combining 1,000 layoffs and 800 positions that will remain unfilled. Store and supply chain employees are unaffected. Affected staff will receive severance packages and continued pay through January 3, 2026.
Leadership Transition Fuels Strategic Overhaul
The layoffs coincide with a major leadership change. Michael Fiddelke, previously COO and CFO, will assume the CEO role on February 1, 2026. Fiddelke has also led the Enterprise Acceleration Office, focusing on simplifying Target’s operations, integrating technology, and accelerating long-term growth.
“The truth is, the complexity we’ve created over time has been holding us back,” Fiddelke wrote in an internal memo. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
Analysts note that the workforce reduction signals a clear commitment to operational efficiency under new leadership, essential for financial stability and competitiveness.
Financial Implications and Investor Perspective
Target’s decision reflects mounting financial pressure. Shares have fallen 65% since their peak in late 2021, underperforming competitors like Walmart, whose stock has risen 123% over the same period. With roughly 50% of sales coming from discretionary items—compared to Walmart’s 40%—Target is particularly vulnerable to consumer spending trends and economic cycles.
Streamlining the corporate workforce could improve operating margins and free capital for strategic investments in digital platforms, supply chain upgrades, and store modernization. Rebecca Lindland, senior retail analyst at Kantar, commented:
“These layoffs, though difficult, indicate Target’s intent to return to growth. Investors will be watching to see if operational efficiency translates into sustainable revenue recovery.”
Legal and Operational Considerations
Target has carefully structured the layoffs to comply with employment regulations, including severance agreements and continued benefits. The move demonstrates how large corporations balance legal obligations with financial strategy during restructuring, ensuring compliance while protecting investor confidence.
Conclusion: A Strategic Reset for Growth
Target’s corporate downsizing and CEO transition mark a decisive effort to revitalize its operations and restore shareholder value. While difficult for employees, the measures aim to simplify decision-making, reduce overhead, and position the retailer for growth amid a highly competitive retail environment. For CEOs and business leaders, the story exemplifies the intersection of operational strategy, financial performance, and legal risk management in corporate transformation.
