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

Target Corporation announced a major restructuring plan on Friday. The company said it will cut about 1,800 corporate jobs as part of a plan to speed up decision-making, improve profits, and prepare for long-term growth, as per GuruFocus. The company explained that this restructuring is aimed at making the business faster and more efficient, especially as new CEO Michael Fiddelke prepares to take charge.

Michael Fiddelke, who is currently Target’s chief operating officer, will officially become CEO on February 1, 2026, replacing longtime leader Brian Cornell, according to the report by GuruFocus. In a memo sent to employees at Target’s Minneapolis headquarters, Fiddelke said, “The truth is, the complexity we’ve created over time has been holding us back. Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”

Target layoffs and company changes

Fiddelke added that cutting jobs is “a necessary step in building the future of Target and enabling the progress and growth we all want to see”, as per the report by CNBC via Parade. The 1,800 job cuts mark Target’s first big round of layoffs in 10 years, showing how serious the company is about making changes after four years of flat sales.


Jefferies analyst Corey Tarlowe said the move is “painful but necessary,” adding that it sends a clear message that Fiddelke is ready to act boldly after years of weak performance. Tarlowe also said the plan is a positive step for long-term investors, but he warned that sales need to recover visibly before investor confidence improves.

Target stock and future growth

Jefferies kept a “Buy” rating on Target’s stock but said that soft consumer demand and the leadership change could hurt short-term results, as stated by GuruFocus. Target is set to report its third-quarter earnings on November 19, with analysts expecting $25.4 billion in revenue and earnings per share (EPS) of $1.76.

After the job cut news, Target’s shares rose 0.7% in premarket trading, showing that investors somewhat agreed with the move. Over the years, Target became popular for its modern and stylish image, making it different from other big stores. But recently, it has faced problems like fewer shoppers, stock issues, and some customer backlash.

Target’s sales went up by more than $15 billion in 2021 after the COVID-19 pandemic. But in the last four years, its yearly revenue has not grown much. Still, Target sells affordable and stylish items. For example, it recently launched an $8 Woolrich x Target Ceramic Birds Mug, part of a special vintage-style collection.

FAQs

Q1. Why is Target cutting 1,800 jobs?

Target is cutting 1,800 corporate jobs to simplify operations, speed up decisions, and improve profits as new CEO Michael Fiddelke prepares to take charge.

Q2. How has Target’s stock performed recently?

Target’s stock has dropped about 61% since its 2021 peak, though shares rose slightly after the layoff news.