Target layoffs 2026 explained: Why are 500 jobs cut after new CEO’s leadership shake-up? Here's which roles and departments are affected

Target layoffs 2026: Target is making another round of job cuts as it moves quickly to reshape its business under new CEO Michael Fiddelke, who officially stepped into the role earlier this month.

Target Layoffs 2026: Target to Cut 500 Jobs Under CEO Michael Fiddelke

The retailer plans to eliminate about 500 positions in the near future, according to a memo sent to employees on Monday by Chief Stores Officer Adrienne Costanzo and Chief Supply Chain and Logistics Officer Gretchen McCarthy, as per a report.

Target Layoff Tied to Focus on Guest Experience

The message framed the decision as part of a broader push to focus on one of Fiddelke’s central priorities: improving the in-store “guest experience” to drive growth, as per a Yahoo Finance report.


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Store District Consolidation and Supply Chain Changes Planned

To support that goal, Target will consolidate store districts and standardize its field operating model, steps the company says are designed to reduce complexity.

The changes are expected to affect roughly 100 roles at the store district level that have become redundant, along with about 400 positions across Target’s supply chain sites.

Target Layoffs Follow Larger Workforce Reduction Last Year

The announcement follows a much larger workforce reduction late last year, when Target said it would cut 1,800 roles ahead of Fiddelke formally taking over as CEO. Those earlier cuts represented about 8% of the company’s US corporate workforce and included roughly 1,000 existing positions and 800 open roles the company had been hiring for.

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Target to Redirect Savings Toward Store Operations

Target said the savings from trimming corporate roles will be redirected toward its stores. The company plans to increase hours for store employees and invest more in training tied to the guest experience.

No Wage Increases Planned for Store Employees

A Target spokesperson clarified that these changes do not amount to wage increases, as per the Yahoo Finance report. Hourly pay for store workers currently ranges from $15 to $24, depending on location.

New Target CEO Outlines Broader Strategy to Revive Sales

Fiddelke, who was appointed CEO in August, has said his focus is on improving merchandising, strengthening digital capabilities, and upgrading the overall store experience as the company works to reverse a prolonged slowdown in sales.

Target Announces Leadership Changes Amid Restructuring

Alongside the restructuring, Target is also reshaping its leadership team.

On Tuesday, the company announced that Chief Commercial Officer Rick Gomez will leave, while Jill Sando, who oversees merchandising for apparel and accessories, home, and Fun101, will retire, as per a WSJ report.

Lisa Roath, previously in charge of merchandising for food, essentials, and beauty, has been named chief operating officer.

Cara Sylvester, Target’s current chief guest experience officer, will take on the role of chief merchandising officer. Both Roath and Sylvester will report directly to Fiddelke and begin their new roles on February 15.

Gomez and Sando will remain briefly to help with the transition, and Target said it is conducting an external search for a chief guest experience and marketing officer. The leadership changes come shortly after Target added two new members to its board last month.

Target Reaffirms Sales and Earnings Guidance Despite Job Cuts

Despite the internal shakeup, Target reaffirmed its previously issued guidance for sales, earnings per share, and adjusted earnings per share for the current fourth quarter, signaling that its broader financial outlook remains unchanged as the company moves through this transition, as per the WSJ report.

FAQs

How many jobs is Target cutting this time?

Target plans to eliminate about 500 positions.

Why is Target laying off employees?

The cuts are tied to restructuring aimed at improving the in-store guest experience.