New York — Retail giant Target Corp. is set to lay off roughly 1,000 corporate employees and eliminate about 800 open positions, a move impacting nearly 8% of its global corporate workforce, the company confirmed on Thursday. The decision marks one of the company’s most significant internal restructurings in years as it attempts to navigate declining sales, shifting consumer habits, and intensifying competition.
Incoming CEO Michael Fiddelke, who will officially take the helm next year following Brian Cornell’s retirement, described the move as a step toward a leaner, faster, and more adaptable organization. “These changes set the course for our company to be stronger, faster and better positioned for the future,” Fiddelke said in an internal email to employees.
The announcement comes at a sensitive moment—just weeks before the holiday shopping season, traditionally one of Target’s most profitable periods. But this year, the retailer finds itself battling more than just market pressures.
Sales Decline and Internal Tensions
Target has reported three consecutive quarters of declining sales, driven by consumers pulling back on discretionary spending, especially in home goods and apparel. The company, once seen as a trendsetter in affordable style, is facing headwinds as shoppers prioritize essentials and look to discount competitors like Walmart, Amazon, and Costco.
But Target’s challenges haven’t been purely economic. Earlier this year, the company came under fire after scaling back its diversity, equity, and inclusion (DEI) programs—an abrupt shift that alienated employees and customers who had long viewed Target as a corporate leader in social responsibility.
The move followed backlash from some conservative groups accusing the retailer of politicizing its brand through DEI initiatives and certain product lines. In an effort to defuse controversy, Target quietly rolled back several programs and product displays tied to those initiatives.
The result was a lose-lose situation: progressive consumers felt betrayed, while conservative critics remained skeptical. Analysts say that fallout, combined with weakening sales, has left Target struggling to find its footing.
Stock Performance and Competitive Pressure
The company’s stock (TGT) has plunged nearly 30% in 2025, ranking it among the worst performers in the S&P 500 this year. Investors have grown wary of Target’s uncertain direction, even as rivals continue to strengthen their foothold.
While Walmart and Amazon have leveraged data analytics and logistics networks to boost efficiency, Target has been slower to adapt. Analysts suggest the layoffs could be part of a broader effort to streamline decision-making and cut through corporate red tape.
A Target spokesperson emphasized that the layoffs are not a cost-cutting measure, but rather a strategic restructuring. “We’re realigning our teams to help the company move faster, simplify how we work, and better serve our guests,” the spokesperson said.
Leadership Transition and the Road Ahead
The restructuring also sets the stage for a major leadership transition. Michael Fiddelke, currently Target’s Chief Financial Officer, will succeed Brian Cornell, who has led the company since 2014. Cornell is credited with revitalizing Target’s brand and expanding its digital and delivery capabilities, but the recent downturn underscores the challenges Fiddelke will inherit.
Industry observers say the new CEO’s focus will likely center on improving operational agility and rethinking Target’s merchandising approach. With consumer confidence wavering and inflation still weighing on spending habits, the company’s ability to pivot quickly will be crucial.
“Target’s brand equity remains strong,” said retail analyst Jennifer Marks. “But its culture and strategy need recalibration. The next few quarters will determine whether this restructuring truly positions Target for long-term recovery—or signals deeper structural issues.”
Outlook
As Target braces for the holidays, the pressure is on to prove that the layoffs are part of a long-term vision rather than a reactionary move. The company insists it’s investing in growth areas, including supply chain efficiency, digital experience, and store modernization.
Whether that’s enough to restore investor confidence and reconnect with disillusioned shoppers remains uncertain. But one thing is clear: after a turbulent year marked by declining sales, social controversy, and leadership change, Target’s next chapter begins under intense scrutiny.