Target to Cut 500 Jobs Under CEO Michael Fiddelke’s Operational Restructuring Plan

In an effort to streamline operations and re-establish sales momentum, newly installed chief executive Michael Fiddelke has decided to lay off around 500 people at Target. The layoffs are a component of a larger reorganisation that will provide store managers more power and streamline the retailer's store field structure.

In an effort to give store directors more authority, Target has announced that it is reducing the number of districts in its organization. Approximately one hundred positions will be cut from district offices. But the company's supply-chain locations will lose about 400. No jobs at the store level will be impacted, according to Target.

Why Target Opted for Layoffs?

Target is under increasing pressure to improve execution, and this restructure is a reflection of that. As competition heats up and consumer demand stays unequal, the company must reinvest in customer experience. Without providing a specific amount, Target stated that the adjustments would enable it to enhance its investment in guest-experience training and more in-store staff. Layoffs are part of a larger leadership transition. Fiddelke was officially appointed in August and took over as CEO this month.

Fiddelke wants to improve the in-store shopping experience, polish merchandising, and strengthen digital capabilities. He announced Rick Gomez's resignation as chief commercial officer on February 10th. Additionally, Target announced that Jill Sando, who was in charge of merchandise for clothing, accessories, and home, will be retiring. Lisa Roath, who had been in charge of food, necessities, and beauty merchandising before, was named COO by Fiddelke. The current chief guest experience officer, Cara Sylvester, was also appointed chief merchandising officer by him. On February 15, they will both take over as executives and report directly to him.

Target Starting a New Chapter

According to Fiddelke's statement, Target is embarking on a new chapter and is making rapid progress toward its growth-driving initiatives.  He went on to say that the new leadership was brought in to streamline operations and move the strategy forward more quickly and with more responsibility. While the business searches externally for a chief guest experience and marketing officer, Target announced that Gomez and Sando will stay on for a short time to assist with the transition.

After adding two new board members last month, Target decided to undergo this revamp, indicating that its strategy and performance would continue to be closely monitored. Target has reiterated its sales and earnings projections for the current quarter, indicating that the company is still committed to stabilising growth despite the ongoing cost-cutting efforts.