Target customers have shifted their buying patterns in recent months, purchasing less of the company’s home goods and clothing. – David Paul Morris/Bloomberg/Getty Images
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Target announced Thursday that it will lay off 1,000 corporate employees and eliminate 800 open positions, affecting roughly 8% of its global corporate workforce.
In an email to employees, incoming CEO Michael Fiddelke said the changes are intended to “set the course for our company to be stronger, faster, and better positioned” for the future. Fiddelke is set to take over from longtime CEO Brian Cornell next year, as the company announced in August.
The layoffs come ahead of the critical holiday shopping season and highlight ongoing challenges for the Minneapolis-based retailer. Target has been dealing with declining sales and backlash over its decision to roll back certain diversity, equity, and inclusion (DEI) initiatives. Critics argued that ending these programs betrayed the company’s longstanding commitment to DEI, which had been a cornerstone of its corporate identity.
Target reported that these moves have affected sales, which have now dropped for three consecutive quarters. Economic pressures and competition from Walmart, Amazon, and Costco have also weighed on the retailer. Shifts in consumer buying habits, particularly in home goods and clothing, have further contributed to the decline.
The company’s stock (TGT) has fallen 30% in 2025, placing it among the worst performers in the S&P 500 this year.
A Target spokesperson emphasized that the layoffs are not primarily a cost-cutting measure. Instead, they are part of a broader effort to restructure the organization for faster decision-making and greater agility.
