Target, the American retail chain, is keen to start experiencing growth again after a four-year spell of poor sales. The retailer has resorted to sizeable job cuts, probably for the first time in ten years.
While about a thousand employees have been laid off, it is reported that about 800 roles may not be filled ever. The workforce has been trimmed by about eight per cent. By early next week, most of the impacted members of the workforce will reportedly be informed of their layoff.
After reaching a record high towards the end of 2021, the shares of Target have reportedly dipped 65 per cent. Back in 2021, the American retail company had announced bonuses for its over three lakh-strong workforce in February. The company had decided to pay its hourly-wage employees, working at its stores and distribution centres, a bonus of $500.
Now, four years later, it is reported that Michael Fiddlke, who will officially take over as CEO in February 2026, has sent a mail to the employees wherein he has stated how the headcount reduction was necessary to make the company “stronger, faster and better positioned” for the future.
The job cuts at Target have been announced right before the holiday season, which is the busiest and most important period for the retail chain. This only indicates how difficult the situation is becoming for the company, with three quarters of weak performance. Additionally, the company has been facing stiff competition from the likes of Walmart, Costco and Amazon.
