On Tuesday, we’ll share changes to our headquarters structure as an important step in accelerating how we work. This includes eliminating about 1,800 non-field roles—about 8% of our global HQ team. As we make these changes, I’m asking all U.S. HQ team members to work from home next week. Target in India and our other global teams will follow their in-office routines.
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@b0 wdym take the balance of your healthcare spending and roll it into severance?
@a8 100% I hate the slippery language that downplays the 1000 people and makes it easy to think it’s 8% of US employees.
@b0 you don’t get one pay period for each year you were at Target, you get one weeks pay for each year you were there.
@b0 partial years are not pro-rated. At least mine weren’t a few months ago.
Rumour is that they will sell off to Walmart Q226 in an aggressive takeover. You heard it hear first
Am I the only one reading his memo where it’s a possibility they’d let go of people tomorrow/monday — and then announce the new structure Tuesday..?
@ax target lost a lot more guests from going anti-woke because they were threatened into doing so by the current administration. And that intel is straight from target lawyers.
If you think the C-suiters are wonderful, well you got played.
@am if its anything like recent ones those affected will have 60 days to "find another role internally" ( 😂 ) receive 1 pay period for every year they have been employed, partial years prorated. in addition they will take the balance of your health care spending and roll it into the severance package. your discount and health insurance will be active thru the 60 day period.
Absolutely cruel to announce this on a Thursday afternoon and not actually rip the bandage off until Tuesday. And how d-mb does Fiddelke think people are? If it wasn't about cost cutting, they would actually reorganize and move people around, not get rid of their jobs. Best wishes to all.
Saying it’s not about cost cutting is a bald faced lie. Why would anyone trust management so insultingly dishonest?
@ah now we get the 1000-person zoom call, hosted by AI
People walk past a Target store in Los Angeles.
Target has reported 11 consecutive quarters of falling or weak comparable sales growth. allison dinner/epa/Shutterstock
Target TGT 0.24%increase; green up pointing triangle plans to cut around 1,800 corporate roles as part of an effort to remake its strategy to reverse a period of stagnant sales.
Target announced Thursday it will lay off around 1,000 global corporate employees and cut 800 open roles. The move will cut around 8% of its approximately 22,000 corporate employees, with around 80% of the cuts in its U.S. ranks.
“The truth is, the complexity we’ve created over time has been holding us back,” Michael Fiddelke, Target’s incoming chief executive, said in a memo sent to staff. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
The company will share details of the changes next Tuesday and asked all U.S. corporate employees to work from home next week, he said in the memo. “It will be difficult,” said Fiddelke. “It’s a necessary step.”
Target has reported 11 consecutive quarters of falling or weak comparable sales growth and named Fiddelke as its next CEO over the summer.
Fiddelke, who has spent his career at Target, will officially take the role in February, but in August said he was already working to speed up the pace of improvements, including assessing the company’s headquarters structure, and refreshing the retailer’s sharp focus on
Fiddelke wants to improve customers’ shopping experience and speed up the adoption of technology inside the company, but style and design are “our North Star,” said in an interview at the company’s downtown Minneapolis office in August. “Target is being its most Target when those things are true,” Fiddelke said.
The company’s stock dropped 6.3% the day Fiddelke was announced as the retailer’s next CEO and that longtime CEO Brian Cornell would stay on as executive chairman of Target’s board, as many investors hoped for an outside candidate as change agent.
Managers will be affected by the cuts at a higher rate than individual corporate employees, said a Target spokesman. Affected employees are being paid through Jan. 3, in addition to potential severance payouts, he said.
Many Target workers, in a companywide survey in June, said they had grown frustrated with the company’s direction. Roughly half of those surveyed said they didn’t think the retailer was making the changes necessary to compete effectively, The Wall Street Journal reported. Around 40% of those surveyed said they didn’t have confidence in the company’s future.
Target reports quarterly earnings next month.
@as find the url, go to archive.is and paste it there
Can someone post the WSJ article? It has more intel than us employees and it’s behind a paywall.
@an because only a few at the very top are privy to this kind of information and everyone who’s aware has to act as if nothing is coming. Corporate America is gross.
KARE11 is quoting a company spokesman who says "leadership roles were impacted at three times the rate of individual contributors." So manager and above? Directors and above?
@am WSJ said people will be paid with benefits through January 3rd in addition to severance
I was hired 4 weeks ago. I am so confused on why hiring was approved then if this was coming. :(
@OP Does anybody know what severance package may look like?
What’s the rationale in giving us a heads up beforehand? Couldn’t they tell us this new structure today or tomorrow?
@ag enterprise insights
@ad that may be true about the Accenture meetings but that doesn’t explain the back to back 15 min private meetings that are now gone…
@ab what area??
Change that fuels our decent to K-Mart 2.0!
it’s easier to coordinate mass layoffs when no one is in the office huh?
@ab That’s not true, I work for that SVP. There is a newer project Accenture was brought in for related to this org specifically- those meetings are all the calendar every Friday during the length of that project. I'm not saying that team won't be impacted, but that specific meeting is unrelated.
Do we know TII won't be affected? I know it says they will continue operations as usual but does that mean it will only be HQ? Can some of our inner circle spies speak to this?
If you want to know if you are safe, go look at your SVPs calendars. One has meetings with Accenture for “transformation work update” and then back to back private 15 min meetings all day Tuesday…
wsj reporting 1,000 jobs 800 open roles
@a8 what’s total headcount of “Global HQ” folk?
IMPORTANT: It says 8% of global headcount, but TII is not affected so the actual US reduction is closer to 12-15%
@a1 Actually who are responsible leaders will stay and take more cash for them and make it more worse for next years for others to face same situation. Why can't they go first?
@a5 it's the optics. in 2015 there were so many pictures taken of crying employees leaving with boxes. they are trying to minimize the media impact of this.
didn't understand - why work from home ? Is leadership concerned with team members doing anything wrong or what?
Teams already strapped for headcount will yet again be forced to produce more with less support
@a2 it says 1800
How many people is 8%
Wow. That's massive. And none of the people let go are responsible for the position Target finds itself in.