• by Sarah Mahoney , October 24, 2025

Target’s troubles took their ugliest turn in a decade, with the company announcing that it would eliminate 1,800 corporate jobs. The cuts — including 800 unfilled positions and 1,000 layoffs — are the first significant move from incoming CEO Michael Fiddelke and represent about 8% of the retailer's corporate team.

The move is the latest evidence of an ongoing decline. While sales have been falling for three years, problems have accelerated since early January. Much of that stems from a weaker consumer economy: Target gets about half its sales from discretionary products, while at rival Walmart — which has been gaining in this period — only about 40% of purchases fall into that category.

And some of the bleeding stems from bungled decisions around diversity, equity and inclusion, following outgoing CEO Brian Cornell’s decision to scale back the company’s DEI commitments. While many companies followed suit, Target’s employees and customers saw the reversal as “bending the knee to Trump,” a phrase widely used across social media. The backlash spurred internal protests and consumer boycotts that have further dented sales.

In a memo to employees, Fiddelke blamed a bloated corporate structure. “The truth is, the complexity we’ve created over time has been holding us back,” he wrote. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”

Employees will learn Tuesday whether they are losing their jobs, and all corporate staff have been instructed to work from home next week.

Analysts were quick to weigh in. “While there is some truth in Target’s assertion that its job cuts are a consequence of simplification, they are also the result of a business that has been underperforming for a long time and has been operationally weak,” wrote Neil Saunders, managing director of GlobalData. “Cutting corporate jobs may help boost profit, but it will do little to solve problems at the store level unless [Target] also invests in merchandising and customer experience.”

Saunders, who has previously decried the company’s “DEI debacle,” said the brand also needs a cultural reset. “Leadership has been in seeming denial about many of the challenges and has not been nearly open enough about them with either staff or stakeholders.”

Some analysts remain cautiously optimistic. “Fiddelke intends to move with urgency to return Target to a positive sales trajectory by making investments, particularly as related to products and the store experience,” wrote Brett Husslein, who follows the company for Morningstar. “However, it's going to take significant time and resources for these efforts to enhance its standing durably. We continue to believe that Target's midmarket positioning leaves it vulnerable on both price and assortment, limiting its ability to defend its standing.”