New Target CEO plans 500 job cuts, shifts investment to stores

Target announced a restructuring that will eliminate about 500 roles as new CEO Michael Fiddelke redirects savings into stores to improve the customer experience. The cuts, described in an internal memo obtained by BBC and CNBC, will primarily affect supply chain and regional office functions while preserving store-level jobs.

According to reporting based on the memo, roughly 400 positions will come from supply chain and distribution sites and about 100 roles will be eliminated at the store district level. NBC News reported the memo was written by Adrienne Costanzo, chief stores officer, and Gretchen McCarthy, chief supply chain and logistics officer, and that it was sent to employees across headquarters and store field teams on Monday afternoon. The outlets that obtained the memo said some regional offices will be closed even though store associates will not lose jobs.

Memo language reported by NBC News said the company is “consolidating the number of store districts to streamline our field structure and better empower our store directors to meet guests’ needs.” The BBC reported that the company will “boost store staffing, adding ‘labor and hours where needed most,’” and that leaders told employees “Elevating the guest experience is a key priority towards growth.” NBC News also cited the memo saying the changes are expected to help employees in stores “work more efficiently and with more focus.”

Target plans to reallocate the savings from corporate reductions toward additional store hours and expanded training, including a new “guest experience” training for in-store workers. The company did not disclose how much additional investment will flow to stores; CNBC reported a Target spokesperson declined to specify the amount. Reporting from CNBC, NBC News and Yahoo Finance noted the announcement will not change starting wages for store workers, which range from $15 to $24 per hour depending on location.

The move is one of the first major strategic decisions under Michael Fiddelke. BBC reported Fiddelke was “named to lead last year,” while CNBC and Yahoo Finance wrote he “stepped into the top job on Feb. 1.” The restructuring follows earlier workforce reductions that began in October, when Target cut 1,800 corporate roles. BBC and CNBC described the October reductions as “roughly 8% of its global corporate workforce,” while Yahoo Finance framed the cuts as “8% of Target’s corporate roles in the US, including 1,000 existing roles and about 800 open roles the company had been hiring for.”

For workers, the immediate impact falls on distribution center and regional office employees who have been notified and, NBC News reported, will be supported with resources and benefits. Store directors and hourly staff should see additional training and hours but not layoffs; the company said the initiative aims to simplify store operations and address customer-facing problems such as sloppier shelves, out-of-stock items and longer checkout lines. Target operates nearly 2,000 stores across the United States.

What comes next is whether the redirected investment measurably improves in-store service and whether Target provides details on the dollar value of reinvestment, the timeline and which regional offices will close. The company is set to report fourth-quarter and annual results on March 3, a moment investors and employees will watch for further signals on the retail turnaround.