Target cuts 500 district office jobs to fund frontline store staffing

Target is eliminating about 500 roles across its U.S. district offices and supply chain and distribution sites to free up payroll for frontline stores, the company told employees in an internal memo. The reductions, which Target said will not affect store-level roles, are being framed as a move to boost in-store staffing, address housekeeping problems and improve the customer experience.

The company gave a roughly 100-role reduction at the store district level and about 400 cuts at supply chain and distribution sites, and said it will reduce the number of store districts that oversee its nearly 2,000 U.S. stores. Adrienne Costanzo, Target’s chief stores officer, and Gretchen McCarthy, chief supply chain and logistics officer, were listed as the memo’s authors; the message was sent to headquarters and store field teams on Monday. The memo stated in part: “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.”

Target described the initiative as among the first operational moves under Michael Fiddelke, who became chief executive on Feb. 1. Fiddelke, a longtime Target executive who previously served as CFO and COO, will implement the district consolidation and reorganization as part of efforts to “bolster store personnel levels” and “elevate the guest experience,” executives told employees. The company said those changes aim to correct issues managers and customers have raised, such as sloppy shelves, out-of-stocks and lengthy checkout lines, problems industry observers link in part to the growing use of stores as fulfillment centers.

Target said the announcement will not change starting wages for store workers, which range from $15 to $24 per hour depending on location. A spokesperson declined to specify the dollar amount of payroll that will be redirected to stores. The memo also noted the company has “already shared the news with team members directly impacted, and we'll be supporting them through this transition with a range of resources and benefits.”

The move follows an earlier round of cuts last October that eliminated about 1,800 corporate jobs. It arrives amid pressure on Target’s sales and stock performance: comparable sales fell 2.7% last quarter and the company’s shares remain well below their 2021 peak. Target also announced leadership shifts in the same news window, naming Cara Sylvester as chief merchandising officer and Lisa Roath as chief operating officer.

For store employees, the immediate implication is more payroll devoted to on-the-ground labor and a rollout of guest-experience training for every team member, but several details remain unclear. Target has not said whether the new funding will create net new hires or simply add hours for existing staff, which districts will be consolidated, or the exact benefits and severance for affected district and supply-chain employees. Competitors also took parallel steps in the period, with Lowe’s announcing about 600 corporate layoffs shortly after.

As Target implements the reorganization, frontline workers and managers will be watching for changes in scheduling, staffing levels and training timelines. Reporters and employees alike will be seeking specifics on hiring versus hours, the size of the payroll shift, and the schedule for district consolidations as the company moves to translate office cuts into store-level service improvements.