Target Announces 800+ Layoffs
Target is reportedly laying off over 800 employees in Minnesota as part of a broader restructuring. The layoffs are scheduled to take effect in January 2026 but were discussed in recent reports. This move follows the company's recent $110M lease termination for a Minneapolis property, signaling significant operational shifts at the major competitor.
The layoffs are part of a larger corporate workforce reduction of approximately 1,800 positions, which includes about 1,000 layoffs and the elimination of 800 open roles. This constitutes roughly 8% of Target's global corporate staff and is the company's largest workforce reduction in a decade. The stated goal is to simplify the company's structure, which incoming CEO Michael Fiddelke noted had become "too complex and slow-moving." The Minnesota job cuts are split between 528 employees at the downtown Minneapolis headquarters and 287 at the Brooklyn Park campus. Affected corporate departments include a wide range of functions such as merchandising/buying, marketing, supply chain, guest services, and technology. The layoffs specifically impacted roles tied to the RedCard credit operations and digital guest services. This restructuring follows a period of sluggish sales and is part of a broader strategy under new CEO Michael Fiddelke, who took the helm in February 2026. The company is also making significant leadership changes, including appointing Cara Sylvester as the new Chief Merchandising Officer and Lisa Roath as Chief Operating Officer to streamline operations and accelerate growth. The $110 million lease termination was for the City Center tower in downtown Minneapolis, a property Target had already vacated in 2021 as remote work shifted its office needs. The lease was set to run through 2031, and the payment officially ends Target's financial obligation for the nearly one million square feet of now-vacant office space. As part of its strategic shift, Target plans to invest $5 billion in capital expenditures in 2026, focusing on store remodels, technology, and digital fulfillment. The company is also expanding its beauty offerings, having added 45 new beauty brands recently with plans for more additions in 2026, signaling a continued focus on this key category. Looking ahead, Target is focused on enhancing its merchandising, elevating the in-store and digital guest experience, and using technology like AI to create a more personalized shopping journey. The retailer also plans to open over 300 new, mostly larger-format, stores by 2035 to expand its national footprint.
