Target to cut 1,800 jobs in major restructuring as new CEO Michael Fiddelke steps in

Core Insights - Target Corporation announced a restructuring plan that includes cutting approximately 1,800 corporate jobs to enhance decision-making speed, improve profitability, and prepare for long-term growth as new CEO Michael Fiddelke prepares to take charge [1][2][7] - The job cuts are seen as a necessary step to simplify operations and address the complexity that has hindered the company's performance over time [2][8] - Jefferies analyst Corey Tarlowe described the layoffs as "painful but necessary," indicating that it signals Fiddelke's readiness to implement bold changes after years of underperformance [2][8] Company Changes - Michael Fiddelke, currently the Chief Operating Officer, will officially become CEO on February 1, 2026, succeeding Brian Cornell [2][8] - The layoffs mark Target's first significant job reduction in a decade, reflecting the company's commitment to making substantial changes after four years of stagnant sales [2][8] Financial Performance - Target is expected to report third-quarter earnings on November 19, with analysts forecasting revenue of $25.4 billion and earnings per share (EPS) of $1.76 [3][4] - Following the announcement of job cuts, Target's shares increased by 0.7% in premarket trading, indicating some investor support for the restructuring plan [6][8] - Target's stock has declined approximately 61% since its peak in 2021, although the recent layoffs have led to a slight uptick in share price [6][8] Market Context - Target's sales surged by over $15 billion in 2021 due to the COVID-19 pandemic, but the company has struggled with stagnant revenue growth over the past four years [6][8] - The company has faced challenges such as reduced customer traffic, inventory issues, and backlash from some customers, which have impacted its overall performance [6][8]