Target will cut roughly 500 jobs across its regional offices and distribution sites in the US, a move executives have said would allow the struggling retailer to invest in its stores and win back customers.
Target executives announced the reductions on Monday in an internal email to employees, which the BBC obtained.
The cuts, along with a reorganisation of geographic store districts, will help the firm boost store staffing, adding “labour and hours where needed most”, the note said.
The move is among the first strategic decisions made by new chief executive Michael Fiddelke, who was named to lead the firm last year as it sought to reverse more than four years of stagnant sales.
The job cuts and restructuring add to the workforce reductions that started last October, when the firm announced its first major downsizing in a decade.
In that previous round of cuts, Target shed 1,800 corporate jobs – roughly 8% of its global corporate workforce.
The reductions announced on Monday, though smaller in scale, underscore the company’s ongoing push to shift investments toward bolstering staffing in its nearly 2,000 stores across the US.
“Elevating the guest experience is a key priority towards growth,” executives told employees on Monday, adding that in-store workers will receive a new “guest experience” training.
A Target spokesperson did not immediately respond to a request for comment on planned investments in Target stores.
The retail giant has historically been known for its affordable clothing and a wide range of low-priced groceries, housewares, electronics, and toys.
But it has struggled in recent years as budget-conscious customers curb spending on non-essentials such as clothing and electronics, which have traditionally accounted for roughly half of the company’s sales.
The company has also faced supply shortages and backlash following a prior decision to discontinue diversity, equity, and inclusion (DEI) targets.
Upheaval in recent weeks over Target’s handling of immigration enforcement in its hometown of Minneapolis has added to the challenges at the firm.
After two workers were detained inside one of its suburban Minneapolis stores last month, more than 300 staff signed an internal letter, seen by the BBC, urging executives to speak up and take steps to keep ICE officers off Target properties.
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