Target plans to cut approximately 1,800 corporate jobs in response to stagnant sales numbers, following the recent appointment of Michael Fiddelke as the new CEO. The cuts represent about an 8% reduction in the corporate workforce, with affected employees receiving severance packages and benefits until Jan. 3, 2026.

Fiddelke, who joined Target more than two decades ago, outlined the necessity of the cuts in a memo to employees. While challenging, the layoffs are deemed essential for the future growth and progress of the company, aiming to streamline decision-making and enhance innovation. Target confirmed that roles in stores and the supply chain remain unaffected by the cuts.

The second-quarter earnings report showed a decline in net sales and operating income for Target, leading the retailer to forecast a single-digit decrease in annual sales. Shares have also dropped significantly since their peak in late 2021. Fiddelke emphasized the need for faster action and outlined plans to drive growth through merchandising, enhanced guest experiences, and accelerated technology.

Fiddelke, who will officially take over as CEO in 2026, previously served as Target’s chief operating officer and CFO. He will also join the company’s board of directors. Target’s current CEO, Brian Cornell, will transition to the role of executive chair of the board following Fiddelke’s appointment.

Read more at Yahoo Finance.: Target to cut about 1,800 corporate jobs amid stagnant sales, reports say