Target Slashes 1,000 Jobs as New CEO Faces Pressure to Drive Growth

Target Slashes 1,000 Jobs to Streamline Growth, Cites CEO

Target Corporation, a leading U.S. retailer, announced plans to lay off approximately 1,000 employees and eliminate 800 vacant positions as part of a major restructuring effort to boost growth after four years of stagnant sales. The decision, reported by The Wall Street Journal on October 23, 2025, marks the company’s first significant workforce reduction in over a decade. Incoming CEO Michael Fiddelke emphasized that the layoffs aim to address organizational inefficiencies slowing the company’s progress. This move comes as Target navigates challenges like sluggish consumer demand and inventory mismanagement.

In an internal memo, Fiddelke stated, “Our complex structure has hindered decision-making, stifling innovation and growth.” He noted that affected employees will be informed on October 28, 2025, and all U.S. corporate staff have been instructed to work remotely next week as the company finalizes its reorganization. The layoffs impact roughly 8% of Target’s corporate workforce, reflecting a broader trend of cost-cutting across U.S. industries, including retail, media, and technology.

Target’s Restructuring Plan to Address Layoffs

The restructuring plan is designed to eliminate excessive organizational layers and overlapping responsibilities that have slowed Target’s ability to innovate. By streamlining operations, Target aims to enhance decision-making and accelerate growth, according to Fiddelke. As of February 1, 2025, Target employed approximately 440,000 people, with the layoffs primarily affecting its corporate workforce in Minneapolis. The elimination of 800 unfilled positions further underscores the company’s focus on operational efficiency.

Michael Fiddelke: Leading Target’s Transformation

Michael Fiddelke, who will assume the role of CEO on February 1, 2026, has been with Target since 2003, starting as an intern. Over the years, he has held key leadership roles in finance, merchandising, human resources, and operations, and currently serves as Chief Operating Officer. His extensive experience within the company positions him to lead Target through this challenging period. Fiddelke’s appointment to the Board of Directors alongside his CEO role signals a strategic shift to address the retailer’s ongoing challenges.

Fiddelke’s leadership comes at a critical time as Target grapples with declining consumer spending and inventory issues. The company has faced criticism for missteps in stock management, which have led to excess inventory and reduced profitability. Fiddelke’s restructuring plan aims to reposition Target for long-term growth by addressing these operational challenges and fostering a more agile corporate structure.

Challenges Facing Target: Consumer Demand and DEI Controversy

Target’s decision to cut jobs reflects broader challenges in the retail sector, where companies are tightening budgets amid economic uncertainty. Sluggish consumer demand has hit retailers hard, with shoppers prioritizing essentials over discretionary purchases. Target’s sales have remained flat for four years, prompting the need for drastic measures to restore growth. Additionally, the company’s recent decision to scale back its diversity, equity, and inclusion (DEI) initiatives has sparked controversy, drawing criticism from both employees and the public.

The DEI rollback has raised concerns about Target’s commitment to inclusive workplaces, with some arguing it could impact employee morale and brand reputation. However, Fiddelke has defended the move as part of a broader strategy to focus on core business priorities. Balancing these changes with the need to maintain customer loyalty and employee trust will be a key challenge for Target’s leadership moving forward.

Stock Performance and Market Response

As shown in the finance card above, Target’s stock price (TGT) closed at $94.25 on October 23, 2025, with a marginal increase of less than 1% in extended trading, reflecting a cautious market response to the layoff announcement. The stock opened at $94.07, reached a high of $95.03, and dipped to a low of $92.96 during the day. Over the past year, Target’s stock has seen significant volatility, with a year-high of $158.42 and a year-low of $85.36, indicating the challenges the retailer faces in a competitive market.

The layoffs are part of a broader trend across U.S. industries, with companies like Walmart, Amazon, and tech giants implementing job cuts to streamline operations. Target’s market capitalization, as reported in the finance card above, stands at approximately $42.89 billion, reflecting its position as a major player in retail despite recent struggles. Investors are closely watching how Fiddelke’s leadership and the restructuring plan will impact Target’s financial performance in the coming quarters.

Industry Context and Future Outlook

The retail sector is undergoing significant transformation, with companies adapting to changing consumer behaviors and economic pressures. Target’s layoffs align with similar moves by competitors, as retailers seek to optimize costs and improve efficiency. The decision to eliminate 800 unfilled positions suggests a cautious approach to hiring, reflecting uncertainty about future demand. Target’s ability to execute its restructuring plan effectively will be critical to regaining growth momentum.

Looking ahead, Target is focusing on enhancing its supply chain, improving inventory management, and investing in digital channels to compete with e-commerce giants. The company’s leadership is also exploring ways to strengthen its brand appeal, particularly among cost-conscious shoppers. However, the layoffs and DEI controversy could pose challenges in maintaining employee engagement and customer trust, both of which are essential for long-term success.

Target’s restructuring efforts come at a pivotal moment for the retail industry, as companies navigate inflation, shifting consumer preferences, and technological disruption. By streamlining its corporate structure, Target aims to become more agile and responsive to market demands. Fiddelke’s leadership will be tested as he seeks to balance cost-cutting with investments in innovation and customer experience.

The broader economic environment remains challenging, with rising interest rates and inflation impacting consumer spending. Target’s ability to adapt to these conditions while maintaining its competitive edge will determine its success in the coming years. The layoffs, while difficult, are seen as a necessary step to position the company for sustainable growth in a rapidly evolving retail landscape.

As Target moves forward with its restructuring, stakeholders are hopeful that the changes will lead to improved financial performance and a stronger market position. The company’s focus on operational efficiency and strategic investments could pave the way for a turnaround, but the road ahead will require careful execution and adaptability. Target’s journey under Fiddelke’s leadership will be closely watched by investors, employees, and consumers alike.