Target in US to cut up to 8% of corporate roles as retailer streamlines operations

America’s seventh largest retailer Target Corporation will eliminate roughly 1,800 corporate positions in what marks its largest round of layoffs in a decade, as the retailer works to simplify operations and reignite growth following several sluggish years.

The reductions, announced in an internal memo to staff earlier today from incoming chief executive Michael Fiddelke, represent about 8 percent of Target’s corporate workforce. According to the company, the total includes about 1,000 employees who will be laid off and another 800 unfilled roles that will be removed from the organizational structure. Employees affected by the cuts will be informed early next week.

No positions in Target’s stores or supply chain are being eliminated, the company said. Those losing their jobs will continue to receive pay and benefits through early January, along with severance packages and career transition assistance.

In his message to employees, Fiddelke described the move as necessary to make Target more agile. “The truth is, the complexity we’ve created over time has been holding us back,” he wrote. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”

Fiddelke, who has served as chief operating officer and previously as chief financial officer, is set to succeed long-time CEO Brian Cornell on February 1. His restructuring push follows months of internal review under the company’s Enterprise Acceleration Office, an initiative launched in May to improve efficiency, technology use, and decision-making speed.

Pressures on growth and talent

For HR leaders, the move reflects the widening gap between retail brands adapting to a tougher consumer climate and those struggling to balance digital transformation with workforce stability. Target’s corporate layoffs follow similar actions across the retail sector, as companies respond to slower discretionary spending, cost inflation, and evolving online strategies.

Kohl’s announced early this year that it would cut nearly 10 percent of its corporate staff, while Walmart trimmed about 1,500 roles across its technology and e-commerce divisions. Saks Global and Kroger have also reduced corporate headcount in recent months as part of broader restructuring efforts.

The acceleration of corporate-level downsizing marks a sharp turn for a sector that only a few years ago was aggressively hiring digital, analytics, and merchandising talent. Analysts from Challenger, Gray & Christmas report that U.S. retail job cuts increased 274 percent in the first half of 2025 compared with the same period a year earlier.

Navigating workforce impact

For Target’s HR and management teams, the coming weeks will focus on communicating clearly and managing internal morale. Experts say layoffs of this scale test organizational resilience, particularly when tied to leadership transitions. Maintaining productivity among remaining teams, ensuring transparency around future strategy, and retaining critical talent will be priorities.

While the company’s stores and supply-chain networks are unaffected, the cuts signal an effort to flatten corporate hierarchies and streamline collaboration between business units. The move also reflects an industry-wide trend toward leaner, tech-enabled operations designed to offset rising costs and volatile consumer demand.

Market and leadership context

Target has faced several challenging quarters marked by declining store traffic and excess inventory. The company expects overall sales to fall this year and has watched its share price drop more than 60 percent from its 2021 peak. Its heavy reliance on discretionary categories—about half of total sales—has left it more vulnerable to swings in consumer sentiment than competitors such as Walmart, which generates a greater share of revenue from groceries and essential goods.

For HR professionals, Target’s layoffs offer a reminder that workforce planning is increasingly central to financial and operational strategy. As the retailer prepares for new leadership, the challenge will be balancing cost discipline with employee engagement and capability-building to position the company for its next growth phase.

Target’s restructuring underscores a broader question for the retail sector: how to preserve innovation and culture while recalibrating to a leaner, more digitally oriented business model.

Kohl’s

In January, Kohl’s announced it would cut roughly 10 per cent of its corporate workforce as part of a restructuring effort. The reductions primarily affect headquarters and support roles rather than in-store employees. For HR teams, the focus has been on reassignments and communication to maintain morale among remaining corporate staff.

Walmart

Walmart disclosed plans to eliminate about 1,500 U.S. jobs this year. The cuts are concentrated in global technology, U.S. e-commerce fulfilment, and its advertising division, Walmart Connect. The move reflects the company’s continued drive toward automation and operational efficiency. HR teams are working to support redeployment into growth areas such as logistics and digital retail operations.

JCPenney

JCPenney announced the closure of its Alliance Supply Chain warehouse in Texas, resulting in around 300 layoffs beginning in August. The company cited ongoing optimisation of its logistics network. HR teams are coordinating transition assistance, including relocation options and retraining programs for affected workers.

Saks Global

Following its acquisition of Neiman Marcus Group, Saks Global confirmed that approximately five per cent of its corporate workforce—around 150 roles—would be eliminated. The company is consolidating functions to reduce overlap between the two luxury retail brands. For HR, this has meant managing integration communications and addressing retention risks for key talent in both organisations.

The Kroger Co.

Kroger plans to lay off fewer than 1,000 corporate associates as it streamlines its business structure. The retailer also expects to close about 60 underperforming stores over the next 18 months. Store employees are largely unaffected by the corporate cuts, but HR teams face challenges managing change across both the corporate and retail sides of the business.

Nike

Nike has undertaken a limited round of corporate layoffs—fewer than one per cent of its U.S. workforce—as part of a broader restructuring of its business units. The company emphasised that the move is intended to sharpen its focus on product innovation and consumer engagement rather than simply cutting costs. HR is playing a key role in repositioning staff and supporting career development in growth divisions.

Broader Retail Trends

Industry data show that U.S. retail job cuts rose by more than 270 per cent in the first five months of 2025 compared to the same period in 2024, totalling roughly 76,000 positions. The spike reflects a combination of factors: softening consumer demand, rising operational costs, store closures, and the ongoing shift to digital channels.

Retailers are investing heavily in automation, supply-chain modernisation, and online fulfilment capacity. These changes have disproportionately affected corporate and back-office roles, while most frontline store positions have remained relatively stable due to continued demand for in-person customer service.

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