Target sends out layoff notices to 1,000 employees on Tuesday

Target workers await layoff news

Target announced on Oct. 23 that it will eliminate 1,800 corporate positions. This includes 1,000 employee layoffs and the closure of 800 unfilled jobs. Employees are scheduled to be notified of the layoffs on Tuesday. FOX 9’s Se Kwon has more on the story.

MINNEAPOLIS (FOX 9) - Target corporate employees learned Tuesday whether they are among the roughly 1,000 individuals affected by the company's layoffs. 

Target layoff notices

The backstory:

Target announced on Oct. 23 that it would be laying off 1,000 employees and cutting 800 open positions as part of a restructuring plan. The email sent to employees indicated the layoffs were not to cut costs but to streamline operations and bring forth "process and growth."

Following the announcement, Target's corporate staff had been asked to work from home as employees would not find out their fate until Tuesday, Oct. 28. 

A Target spokesperson told the Associated Press (AP) the cuts represent around 8% of Target's global workforce, but the majority of employees affected work at the headquarters in Minneapolis. In-store workers will not be affected by the downsizing. 

WARN letter:

The Minnesota's State Rapid Response Team received at least two WARN letters from Target detailing the corporate workforce reduction. The report details approximately 815 employees being permanently laid off, with approximately 528 coming from the downtown Minneapolis headquarters and another 287 from Target's Northern Campus in Brooklyn Park.

Those affected by layoffs will receive pay and benefits through Jan. 3, and will get severance packages and support services. 

CEO changes and previous layoffs

Target names new CEO, stock drops with sales

Target has named its new CEO, which was met by a drop in its stock price on Wednesday. Meanwhile, sales have fallen for another quarter. FOX 9?s Mike Manzoni has the latest on the retailer whose headquarters is based in Minnesota.

Dig deeper:

This marks the first major layoff for Target in a decade. Back in 2015, the company let go 1,700 corporate employees, about 13% of its headquarters workforce, as a cost-saving measure following the closure of its Canadian operations. 

The latest layoff announcement comes just two months after CEO Brian Cornell announced his resignation. He will be replaced by the company's chief operating officer in 2026. Cornell cited ongoing struggles with declining sales and profits, a drop in stock price, and backlash over the company's decision to roll back its DEI initiatives as reasons for his resignation.

According to the most recent earnings report, Target’s comparable sales dropped 1.9% in quarter two, and its net income dropped 21%. 

Target layoffs could show sign in changing retail landscape

Target is set to notify 1,000 corporate employees of layoffs on Tuesday, while Amazon is also reducing its workforce. Axios reporter Nick Halter discusses how these layoffs might signal shifts in the retail industry.