Target announces 500 layoffs as CEO Michael Fiddelke streamlines operations

Target will lay off about 500 employees as newly installed chief executive Michael Fiddelke moves to streamline operations and revive sales momentum.

The job cuts are part of a restructuring aimed at simplifying the retailer’s store field structure and giving store leaders greater authority, Bloomberg News reported.

Target said it is consolidating the number of districts in its organisation, a shift it expects will better empower store directors. Around 100 eliminated roles will come from district offices, while roughly 400 will be cut from the company’s supply-chain sites. Target said no store-level jobs will be affected.

The restructuring reflects mounting pressure on large US retailers to improve execution and reinvest in customer experience as consumer demand remains uneven and competition intensifies.

Target added that the changes would allow it to increase investment in additional in-store labour and guest-experience training, though it did not quantify the spending.

The layoffs come alongside a broader leadership shake-up. Fiddelke, who was appointed in August and officially took over this month, has said he wants to sharpen merchandising, strengthen digital capabilities and improve the in-store shopping experience.

On Tuesday, he announced that Chief Commercial Officer Rick Gomez will leave the company, while Jill Sando, who oversaw merchandising for apparel, accessories and home, will retire, Target said.

Fiddelke appointed Lisa Roath, previously responsible for food, essentials and beauty merchandising, as chief operating officer. He also named Cara Sylvester, currently chief guest experience officer, as chief merchandising officer. Both executives will report directly to him and assume their new roles on February 15.

“It’s the start of a new chapter for Target and we’re moving quickly to take action against our priorities that will drive growth within our business,” Fiddelke said in a statement carried by Bloomberg News. He added that the leadership changes were designed to simplify the structure and advance strategy with greater speed and accountability.

Target said Gomez and Sando will remain briefly to support the transition, and the company is conducting an external search for a chief guest-experience and marketing officer.

The overhaul follows Target’s decision last month to add two new members to its board, signalling continued scrutiny of strategy and performance.

Target also reaffirmed its guidance for sales and earnings for the current fourth quarter, suggesting that while cost-cutting is underway, the retailer remains focused on stabilising growth.

Investors will now be watching whether Fiddelke’s early moves translate into a stronger store experience and improved results in the year ahead.