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Target plans to create 1,000 jobs and reduce 800 vacancies Struggling Sales as a Retailer The incoming chief executive warned: “It will be tough.”
The job cuts will affect about 8 percent of the 22,000 corporate employees. The retailer wants to reverse stagnant sales, wall street journal First reported on Thursday.
corporate employee They are being asked to work from home next week, according to the memo obtained by the outlet, sent by Michael Fidelke, who is scheduled to take over as CEO next February.
“It will be difficult,” Fidelke, who has been with the company for 20 years, reportedly said in the memo. “This is a necessary step,” he said.
He said “complexity” in the company’s structure was holding us back and more details about the plans were due to be revealed next Tuesday.
“Too many layers and overlapping tasks slowed down decisions, making it harder to bring ideas to life,” Fidelke said.
Independent Target has been contacted for comment.
Over the past few years, Target has recorded stagnant sales and stock value as it struggles to win back customers after a series of controversies.
Target announced in January that it would End its diversity, equity and inclusion initiatives To comply with President Donald Trump’s executive order banning DEI.
The move sparked a boycott organized by the Rev. Jamal Bryant, a prominent black pastor from Georgia.
They encouraged customers to stay away from Target for Lent – and then the boycott continued, with various grassroots organizations joining in.
The boycott made a difference to Target’s bottom line, as in Q1, the retailer announced disappointing sales, with sales declining 2.8 percent compared to the same period last year.
Last summer, the retail giant reduced your pride goods in June 2023 to appease conservatives after anti-LBGTQ+ individuals and groups boycotted stores and threatened employees.
Over the years, Target’s annual revenues reflect its success with customers. The company is expected to grow from $73.7 billion in 2015 to an all-time high of $109.1 billion in 2022.
Even during the pandemic, while other companies suffered losses, Target reported a $15 billion increase in sales — proving that customers were still willing to shop at their favorite stores — whether online or remotely.
But Target’s current CEO, Brian Cornell, attributed some of the pause to fewer purchases overall by customers — partly due to uncertainty around Trump’s tariffs.
In August, Cornell said Trump’s tariffs remain “challenging and highly uncertain” for the retailer.
Ariana Baio contributed reporting.