Target is restructuring with 1,800 layoffs.

Target's Strategic Restructuring

Target announced that it will reduce 1,800 corporate positions as part of a major restructuring plan in the United States. This decision represents approximately 8% of the global headquarters staff and was made by Michael Fiddelke before he officially became CEO in February 2026.

Among the eliminated positions are approximately 1,000 current jobs and 800 open positions. Most of the cuts are expected to be concentrated in management functions and will take place at the US headquarters.

Fiddelke stated, "Too many layers and overlapping roles have slowed down decision-making processes and made it difficult to implement ideas," emphasizing that this step is necessary to streamline operations and accelerate the retailer's transformation.

This move comes during a period of long-standing underperformance in comparable sales for Target and increasing pressure from investors for operational improvements. Wall Street analysts are evaluating the effectiveness and implications of this step.

Wolfe Research: "Fiddelke is not waiting until February 2026 to make major decisions. Brian Cornell continuing as Chairman of the Board and the CEO transition not occurring until February 2026 shows how urgently Michael is approaching the core issues. Investors may witness significant movement in the fourth-quarter results. However, this news indicates that some changes might be accelerated."

Mizuho: "We expect more restructuring activities to occur in the coming months – potentially after the peak of the holiday season – which could create reinvestment opportunities for a struggling but potentially recoverable business. Shares are trading at very low levels. Downward pressure on forecasts continues. Most importantly, we remind investors that the business has not yet reached a 'kitchen sink' situation."

Jefferies: "Target is executing a 8% corporate downsizing; this is seen as a painful but necessary step after years of weak sales. This move indicates that the new CEO Michael Fiddelke is showing decisiveness and a willingness to shift towards a respect for the current situation. However, signs of upper-income recovery are critical for improving stock sentiment."