By Blessing Nweke
Target will eliminate about 500 positions and restructure parts of its organization as it works to regain customers and return to growth, according to an internal memo sent Monday by company executives.
The cuts include roughly 400 roles within Target’s supply chain operations and about 100 positions at the store district level. No store-level employees will be affected, though some regional offices will close, a company spokesperson said. Target operates about 2,000 stores across the United States.
In the memo, chief stores officer Adrienne Costanzo and chief supply chain and logistics officer Gretchen McCarthy said the retailer will consolidate store districts to “streamline our field structure and better empower our store directors to meet guests’ needs.”
The company said the restructuring is designed to free up resources for reinvestment in stores, including additional labor hours and expanded guest-experience training. Starting wages for store workers — typically between $15 and $24 an hour depending on location — will remain unchanged.
Target has lost market share in recent years to rivals such as Walmart and Amazon. Inflation has pressured shoppers, and some customers have criticized cluttered stores and inconsistent merchandise that strayed from the retailer’s affordable-chic identity.
The company has also faced public scrutiny over its handling of contentious social issues, including diversity initiatives and unrest in Minneapolis.
Last year, Target introduced its “10-4 program,” encouraging employees to greet customers warmly within 10 feet, highlighting a renewed focus on service.
Affected employees have been notified and will receive support and benefits. The restructuring marks one of the first major moves under new CEO Michael Fiddelke. Target is scheduled to report earnings on March 3.
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