Target Strengthens Workforce, Training Amid First Major Layoffs in a Decade

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Target’s Net Income Jumps Over 40% as Customer Spending Improves
The Target logo is displayed at a Target store on August 20, 2024 in Los Angeles, California. Target is set to release its second quarter earnings report before tomorrow's opening bell. Mario Tama/Getty Images

Target is cutting about 500 jobs while putting more money into store workers and training, marking its first major layoffs in nearly 10 years as the retailer works to turn around slow sales and improve the shopping experience.

In an internal memo sent Monday, the company said it will reduce the number of store districts—regional groups that oversee its nearly 2,000 locations.

According to CNBC, about 100 district-level roles will be eliminated, along with roughly 400 jobs across supply chain sites. The changes are meant to free up payroll so more hours can be added in stores.

"This change also fuels our ability to put significantly more payroll in our stores — primarily in additional labor and hours where needed most, but also in new guest experience training for every team member at every store," wrote Chief Stores Officer Adrienne Costanzo and Chief Supply Chain and Logistics Officer Gretchen McCarthy.

The memo said employees affected by the cuts have already been notified and will receive support and benefits during the transition.

A Target spokesperson said the move will not change starting wages for store workers, which range from $15 to $24 per hour depending on location. The company did not share how much extra money will go toward stores.

Target Aims to Fix Store Complaints Amid Flat Sales

The workforce shift comes as Target tries to fix complaints from shoppers about messy shelves, empty items and longer checkout lines.

Sales have been mostly flat for four years, and the retailer cut 1,800 corporate jobs last year. New CEO Michael Fiddelke, who took over on Feb. 1, is leading the turnaround effort, FoxBusiness reported.

"Priority 1 through 10 is accelerating Target's growth," Fiddelke said in a recent statement, adding that the company is "moving with urgency and focus."

Fiddelke has said he wants to sharpen Target's merchandise mix, improve stores and the website, and use technology to make operations simpler.

In a past interview, he noted that store managers now handle both in-store shoppers and online order fulfillment, which has made their jobs more complex. "We've got to make sure that we're doing both really well," he said.

Target also announced leadership changes this week. Cara Sylvester will become chief merchandising officer, and Lisa Roath will step into the chief operating officer role.

The company reaffirmed its outlook for fourth-quarter sales and full-year earnings and plans to share more details about its strategy on March 3.

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