Target is eliminating 1,800 roles as new CEO Michael Fiddelke gets set to take over the struggling retailer

Core Insights - Target is eliminating 1,800 roles, representing 8% of its corporate workforce in the US, as it addresses ongoing sales declines and prepares for incoming CEO Michael Fiddelke's leadership [1][4] - The layoffs will primarily affect management positions, with leaders impacted at three times the rate of individual contributors, indicating a focus on restructuring the management hierarchy [3][6] - Target's same-store sales have declined by 1.9% in the most recent quarter, following a 3.8% decline in the first quarter of 2025, highlighting the company's struggles with consumer spending and competition [4][7] Company Strategy - Fiddelke emphasized the need to drive growth, strengthen retail leadership, enhance guest experience, and leverage technology for future growth [2] - Analysts view the layoffs as a necessary step in Target's turnaround strategy, reflecting Fiddelke's urgency to implement changes after years of underperformance [5][6] - Further restructuring is anticipated in the coming months, particularly after the peak holiday period, to create reinvestment opportunities for the business [6] Market Context - Target's stock has decreased by approximately 30% year-to-date, influenced by consumer pullback on discretionary spending, a boycott earlier this year, and competition from low-price retailers like Walmart and dollar stores [3][7] - The company is not alone in its layoffs, as other major firms such as Starbucks, Ford, Meta, and Rivian have also announced job cuts recently [4]