Target is reducing 1,800 jobs: Restructuring process.

Target announced on Thursday that approximately 1,800 corporate positions will be eliminated in order to streamline decision-making processes and rebuild its customer base.

According to a company spokesperson, around 1,000 employees will receive notifications of layoffs next week, while 800 vacant positions are also planned to be closed. These cuts represent about 8% of Target's global corporate workforce, with most of the affected employees reportedly working at the company's Minneapolis headquarters.

Michael Fiddelke, the Chief Operating Officer who will become Target's new CEO on February 1, announced the workforce downsizing process on Thursday. Employees were asked to work from home next week at the Minneapolis offices, with details to be provided on Tuesday.

Fiddelke, a Target veteran of 20 years, stated in his note: "The complexity we have built over time is holding us back. Too many layers and overlapping work are slowing down decision-making and making it difficult for us to bring ideas to life."

Target owns approximately 1,980 stores in the U.S. and has lost ground to Walmart and Amazon due to customer preferences that have been constrained by inflation in recent years. Customers have expressed dissatisfaction with cluttered stores filled with budget-friendly yet stylish products that previously earned the nickname "Tarzhay."

When Fiddelke was announced as the new CEO of Target in August, he mentioned that the company had three urgent priorities: regaining its position, improving customer experience, and making technological investments.

In a message to employees, Fiddelke reiterated those same goals, characterizing the layoffs as a necessary step in building Target's future and ensuring desired progress and growth. "Adjusting our structures is part of the work ahead. This will also require new behaviors and sharper priorities that will strengthen our retail leadership," he wrote.

Target reported that sales from existing physical stores and online channels have either remained flat or declined in nine of the last eleven quarters. In August, Target announced that comparable sales fell by 1.9% in the second quarter and net income declined by 21%.

According to a company spokesperson, the layoffs will not affect store employees or those working in Target's ranking, distribution, and other supply chain facilities. Laid-off corporate employees will receive their salaries and benefits until January 8 and will also receive a separation package.