Target cuts 1,800 jobs in what it deems ‘a necessary step’

Core Insights - Target is implementing changes to reduce corporate complexity and drive growth, with a focus on simplifying operations rather than cutting costs [3][4] - The decision to cut approximately 8% of corporate roles is seen as a necessary response to ongoing weak sales performance [5][7] - Incoming CEO Michael Fiddelke's decisive actions are viewed positively by analysts, indicating a potential turnaround despite current challenges [6] Company Actions - Target plans to lay off about 1,000 corporate staff and close 800 open roles, which constitutes around 8% of its global headquarters workforce [8] - The layoffs will not affect store or supply chain roles, with leader-based positions being impacted at a rate three times that of individual contributors [8] - Affected employees will receive pay and benefits until January 3, along with severance packages, and many will be asked to work from home next week [8] Analyst Perspectives - Jefferies analysts consider the job cuts painful but necessary due to a history of weak sales [5] - GlobalData's Neil Saunders acknowledges that while simplification is a factor, the cuts also reflect long-term underperformance and operational weaknesses [7] - Analysts view the changes as a constructive signal for long-term investors, emphasizing the need for evidence of top-line recovery for improved sentiment [6]