FOX Business’ Gerri Willis reports new data points to strong holiday shopping as government shutdown continues ‘varney & Co’
The target is to cut about 1,000 positions and eliminate 800 open roles as part of an effort to speed up business decisions and drive growth under its new chief executive, Michael Fiddelke.
Fiddelke, who will succeed Brian Cornell as of February, is looking at ways to accelerate the way the company’s teams work, transforming the company into an organization that is focused and quick to drive innovation. This includes eliminating layers of managers.
About 80% of the cut passages are based in the US, and most are concentrated in the Minneapolis area, where the company has its head, and in leadership positions. Target said that those in leadership positions are three times more likely to be excluded from other employees.
New CEO names targets as retailer struggles to reverse sales
The liquidation will account for 8% of the company’s corporate headquarters group.
“In order to better serve our guests, we are prioritizing the need to work quickly and to reduce the complexity created over time in the most important things,” he said, adding that the announcement “improves the way we use technology to complete our next chapters of growth.”
Shoppers at a Target store in Chicago. (Kamil Krzacynski / AFP via Getty Images)
Affected workers will receive benefits and pay in early January in addition to severance pay for any layoffs, the policy said.
Fiddelke said it was written to employees on Thursday that since the company launched the office of business acceleration in May, it is moving forward with the mission to “move faster and simplify how we work to drive the next chapter of growth.”
Target, Best Theos CEEs warn of price hikes as tariffs come into effect
As the executive committee that has been overseeing the program since its launch, Fiddelke has been looking for ways to improve the efficiency of the collaboration and the most important developments. These include company-wide regulatory processes and powerful technology and data in new ways to empower teams and accelerate performance since launch.
A customer walks into a Target store in Sautifornia. (Justin Sullivan/Getty Images)
“The truth is the unity we have created over time has held us back. Too many layers and too much work has reduced decisions,” said Fiddelke in the employee handbook.
Fiddelke said all members of the US HQ team have been asked to work from home next week, but targets in India and the rest of their global teams will follow their office routines.
Starbucks CEO says the coffee chain is ‘ahead of schedule’ in a major turnaround effort after one year
Fiddelke, who has been with the target for more than twenty years, said that while the decision to make these cuts was difficult, we will find that we will be at our event to be stronger, faster and better positioned to serve visitors and other communities to come. ”
A customer leaves a Target store in Rosemeead, Los Angeles County, California, United States, on March 4, 2025. (Zeng hui / xinhua via Getty Images)
In Fiddelke’s current role as chief operating officer of the target, he has cows that prevent growth from the whole business, including investments to build and measure the company’s stores, digital supply and the group. He has also led business efforts to bring in more than $2 billion in efficiencies.
Now, he faces a new challenge: To turn around a retailer that has been facing shrinking retail sales and pressures on profits, in part because of taxes.
Find FOX business on the go by clicking here
In its latest fiscal quarter, the company reported $25.2 billion in sales, down 0.9% from the same period last year. The company attributed the DIP to the store’s backlog of merchandise, although that was partially limited by non-merchandise sales, such as services.
| It’s teasing | Security | – Last | Answer | change % |
|---|---|---|---|---|
| Tgt | Target Corp. | 94.22 | +0.17 |
+ 0.19% |
Retail sales for the year fell 1.9%, with retail sales up 3%. Online sales, however, grew slightly more than 4%. Overall, revenue for the quarter came in at $1.3 billion, down about 19.4% from the same period last year.
