Is Target's Plan to Eliminate 1,800 Jobs Enough to Reinvigorate the Struggling Retailer?

Target Corp. (TGT) is set to undergo significant organizational changes under its incoming CEO, Michael Fiddelke, who has announced plans to reduce its global corporate workforce by about 1,800 positions—representing 8% of its headquarters staff—in an effort to tackle inefficiencies and stagnant sales, as reported by

. In a memo, Fiddelke outlined the initiative, stating the goal is to remove "complexity" that has limited the retailer’s ability to adapt and compete, according to . The job cuts will affect 1,000 current employees and 800 unfilled roles, mainly in management and U.S.-based corporate departments, as noted by .

Fiddelke, who has been with Target for two decades, will take over as CEO in February 2026, following Brian Cornell’s tenure. In his memo, he pointed out that duplicated responsibilities and too many layers of decision-making have slowed Target’s ability to respond to industry challenges, such as increased tariffs, more cautious consumer spending, and competition from Walmart (WMT), according to Morningstar. Some analysts remain doubtful, suggesting that the leadership transition does not signal a substantial change in direction and may not resolve the broader issues impacting Target’s sales, MarketWatch reported.

This restructuring is part of Fiddelke’s larger plan to simplify operations and reestablish

as a top destination for trendy, affordable products, Morningstar noted. Despite this, the extent of the layoffs has sparked worries about possible negative effects on staff morale and business continuity. The Wall Street Journal reported that more information about the layoffs will be shared next week, according to Morningstar, though Target has not yet issued an official response.

Investors responded with caution to the announcement. Target’s stock increased by 0.4% in after-hours trading following the Journal’s initial coverage, but uncertainty about the company’s next steps kept broader investor optimism in check. The restructuring comes as Target faces ongoing sluggish comparable sales, leading shareholders to push for cost-saving actions to boost profits, Investing.com reported.

Although Fiddelke’s restructuring highlights a commitment to improving operational efficiency, analysts warn that deeper issues—like evolving consumer behavior and economic challenges—are still unresolved, according to MarketWatch. The effectiveness of this strategy will rely on Target’s ability to cut costs while maintaining its competitive position in a crowded retail market.