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Target Trims Workforce, Shifts Focus Back to Customer Experience
Minneapolis, MN – Retail giant Target announced a restructuring of its organization this week, resulting in the elimination of approximately 500 roles. The move, outlined in an internal memo to employees, aims to streamline operations and re-energize the company’s focus on its core customer base.
The cuts primarily impact around 400 positions within Target’s supply chain and an additional 100 roles at the store district level. A company spokesperson confirmed that no store-level jobs would be affected, though some regional offices are slated for closure.
Chief Stores Officer Adrienne Costanzo and Chief Supply Chain and Logistics Officer Gretchen McCarthy stated in the memo that Target plans to “consolidate the number of store districts to streamline our field structure and better empower our store directors to meet guests’ needs.” This strategic shift is designed to redirect investment into physical stores, including increased labor hours and enhanced guest experience training for employees.
Current store worker wages, which typically range from $15 to $24 an hour depending on location, will remain unchanged.
Target, operating approximately 2,000 U.S. stores, has recently faced increased competition from rivals like Walmart and Amazon. The company has also contended with the impact of inflation on consumer spending and customer feedback regarding store organization and merchandise consistency, which some felt deviated from Target’s established identity as a polished, affordable-chic retailer. Furthermore, Target has navigated public scrutiny over its responses to various societal issues.
In an effort to revitalize customer connections, Target previously implemented its “10-4 program,” an internal training initiative encouraging employees to make eye contact, smile, and exhibit welcoming behavior when within 10 feet of customers. This underscored a renewed commitment to service as a key differentiator.
The recent memo reiterates that these organizational changes are expected to enable in-store employees to “work more efficiently and with more focus.” Target confirmed that affected workers have already been notified and will receive support through various resources and benefits.
This restructuring marks one of the initial significant changes under new CEO Michael Fiddelke, who assumed leadership during a period of considerable challenge for the company. Target is scheduled to report its fourth-quarter and full-year earnings on March 3.