Target is cutting 1,800 corporate jobs in an effort to jumpstart growth after stagnant sales. The layoffs, the first in a decade, will affect about 8% of the corporate workforce. New CEO Michael Fiddelke, taking over February 1, aims to simplify operations and accelerate growth.

The cuts come as Target tries to rebound from declining sales and customer backlash. The company expects annual sales to decline this year, with shares down 65% since 2021. Target’s sales trends and stock performance have diverged from competitors like Walmart, which draw more sales from necessities.

Target’s layoffs will help the company make urgent changes and move faster to drive growth. The cuts, though difficult, are seen as a necessary step in building the company’s future. Employees affected will receive pay and benefits until January 3, in addition to severance packages.

New CEO Fiddelke aims to lead with merchandising authority, elevate guest experience, and accelerate technology. The changes set the course for Target to be stronger, faster, and better positioned to serve guests and communities in the long term. Employees are asked to work from home next week as part of the reorganization efforts.

Read more at CNBC: Target cuts 1,800 corporate jobs, first major layoffs in a decade