Had a momentary blip of increase and has lost 1.50 since the announcement.
13 replies (most recent on top)
@ep I never said anything about a quick turnaround. This was a small step in a much larger plan that may take years to execute. The layoff bought time for executives, so I'm judging it as such. I don't think it will be effective and the stock will continue to bleed into Q1. BC and team needed something ASAP to slow the bleed by signaling changes to Wall Street. The new CEO announcement went over like a lead balloon because BC is still the chairman of the board. AKA, nothing of substance changed. There's going to be another layoff in January that includes C-suite resignations. IMO, MF will continue to cut expenses in 2026. It's going to be a rough ride at Target HQ for the next 2-3 quarters.
Earnings are later this month. They had to announce sooner than later to get WARNs out and people fired as early into 2026 as possible.
Stock has no reason to go up unless earnings blew through all expectations. More likely that they go down.
@ec You think a company turns around in a single quarter? No chance.
Turnarounds and this level of layoffs take years to see how they went. If it actually works, you'll need a year to re-align all the various positions to see how it went. A quarter is just how the fools who watch the stock market THINK it works.
Real investors that know how things work know this. Gamblers think on the short term.
@e7 One year? You might be a little crazy also. Try next quarter.
Trying to figure out a narrative from 1 or 2 days stock price changes with no real changes in earnings being reported is for people who don't understand how markets operate, or think they're "rational".
Markets are anything BUT rational, especially on the scale of a day or three.
Check back in about a year, after the layoffs have had had time to sink in, and do good/bad/nothing, look at the revenue, and THEN maybe you can tell if it was a good decision or not.
But the freaking stock price after 2 days? You're crazy.
@dq It's both. Investors LOVE when overhead/labor is cut. Everyone is cutting employees right now. At best, this layoff buys sr leadership a few months of grace. Wall Street has zero confidence in the C-suite. More layoffs in January may buy more time before the real issue is addressed.
P.S. Considering how bad things are being managed, it's not surprising the C-suite can't tell they are the elephant in the room.
@de exactly. Target went from being a likable, almost family friendly business into this indecisive, incompetent and unfriendly corporate mess over the last few years.
@d4 no, they don’t. Shareholders do care about scapegoats because they don’t want the same incompetent people making decisions again and again. Your entire argument is nonsense. They want the right people out and the right people in. They know middle management and speediness of making decisions wasn’t the issue. The issue is the decision makers and they kept their jobs.
In my opinion, no major boost in the stock price because the layoff number was too low. Remember, the initial announcement was 8% of ”corporate” employees, NOT 8% of ALL employees. So, the 8% would have been based upon either 12,500 or 22,500 ”corporate” employees; initial announcement of 1,000 Layoffs or 1,800 Combined Layoffs and Closing Vacant Positions. The actual WARN notices show only 528 Downtown and 287 TNC; not exactly 1,000.[1]
The latest EEO-1, Target reported 421,904 employees.[2] Eight percent of ALL employees would have been a different story.
| Job Categories | Totals |
| Executive/Sr Officials & Mgrs | 899 |
| First/Mid Officials & Mgrs | 16,309 |
| Professionals | 11,362 |
| Technicians | 8,343 |
| Sales Workers | 156,807 |
| Administrative Support | 6,335 |
| Craft Workers | 3,224 |
| Operatives | 1,475 |
| Laborers & Helpers | 26,510 |
| Services Workers | 190,640 |
| 2024 Total | 421,904 |
[1] https://bringmethenews.com/minnesota-business/target-workers-learn-their-fates-as-retailer-makes-1000-corporate-layoffs
[2] https://corporate.target.com/sustainability-governance/our-team/human-capital-management/2024-eeo-1-report
[3] Why does Target need two HQ buildings?🎯
@d4 The rollout and handling was completely incompetent, which is why there is no confidence in "new leadership" turning this ship around. Shoppers see this mess too, and more are horrified at this company's actions than previously.
8% layoffs signal a willingness to make tough decisions needed in order to cut costs and restore bottom line results. Shareholders don't care about scapegoats, employee feelings about layoffs or internal communications. Shareholders care about the business and financial results. Layoffs restore some confidence and patience in upper management.
Probably because all these layoffs did was create a shitload more bad publicity for a company that has specialized in bad publicity for the last 2 years. Why would the stock go up because they fired middle management? The people that led to the downfall are still at the company. An internal ceo? Wtf? Cornell just moved to an executive role!? Shareholders aren’t d-mb. They know a scapegoat when they see it. Then to top it off they handled the layoffs in the most ridiculous ways. Poor communication. A weekend of worry. Then come the meeting and your comms aren’t even working!
Let's goooOooOoooooOooo