Target Cut 1,800 Corporate Jobs In Company Restructuring Amid DEI Backlash
Target announced it will cut 1,800 corporate jobs after trying to grow following four years of roughly stagnant sales and boycotts amid DEI backlash. In a memo sent to staff, Target’s incoming CEO, Michael Fiddelke, said the eliminated roles include about 1,000 employee layoffs and about 800 positions that will no longer be filled.
“This spring, we launched our enterprise acceleration efforts with a clear ambition: to move faster and simplify how we work to drive Target’s next chapter of growth,” Fiddekele said in a company memo, shared by CNBC.
“The truth is, the complexity we’ve created over time has been holding us back. Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life,” he added.
Target’s company restructuring
Compared with its retail rivals, Target relies less on groceries and essential goods for its total sales, making its business more susceptible to economic fluctuations and shifts in consumer confidence. Roughly half of Target’s sales come from discretionary products, versus about 40% at Walmart, according to GlobalData Retail estimates.
Target’s shares have decreased by 65% since its all-time high in late 2021 due to the challenges and backlash, according to CBNC. Fiddelke said, “Adjusting our structure is one part of the work ahead of us. It will also require new behaviors and sharper priorities that strengthen our retail leadership in style and design.”
“I know the real impact this has on our team, and it will be difficult. And, it’s a necessary step in building the future of Target and enabling the progress and growth we all want to see,’ he added.
Target’s low sales and leadership change
After serving at Target for 11 years, CEO Brian Cornell is stepping down from the retailer amid low foot traffic and backlash over ending its DEI efforts. The retailer joined the growing list of companies rolling back their DEI initiatives in January.
Subsequently, Pastor Jamal Bryant called for a 40-day boycott against the retailer, which began on Wednesday, March 4. Target’s foot traffic fell amidst its 40-day boycott.
The retailer’s foot traffic has remained low, according to data from analytics platform Placer.ai. Since Q1 2024, the company’s year-over-year foot traffic changes have closely mirrored its revenue shifts, Retail Brew reports, differing by an average of just 1.2 percentage points over the past five quarters.
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