Target to Lay Off 1,000 Employees as Sales Slump Deepens
Retail giant Target has announced plans to lay off around 1,000 corporate employees and eliminate 800 open positions, a move that will affect roughly 8% of its global corporate workforce, the company confirmed.
Incoming CEO Michael Fiddelke, who is set to replace longtime leader Brian Cornell next year, told staff in an internal email that the restructuring was designed to make Target “stronger, faster, and better positioned” for the future.
The layoffs come at a sensitive time for the Minneapolis-based retailer, which is preparing for the crucial holiday shopping season while grappling with declining sales and backlash over its diversity and inclusion policies.
Target has seen sales drop for three consecutive quarters, a slide it partly attributed to customer backlash following its rollback of some diversity, equity, and inclusion (DEI) initiatives – a reversal that disappointed many supporters of the policies.
In addition to reputational challenges, Target continues to face fierce competition from retail heavyweights such as Walmart, Amazon, and Costco, as well as shifting consumer spending habits. Many shoppers have scaled back purchases of home goods and apparel, two of Target’s core product categories.
The company’s stock (TGT) has fallen 30% so far in 2025, placing it among the worst performers in the S&P 500 this year.
A Target spokesperson said the layoffs were not a cost-cutting exercise, but rather an effort to streamline decision-making and position the company for long-term success.
The announcement adds to a growing list of corporate restructurings across major US retailers as the industry braces for uncertain economic conditions heading into 2026.
