Target layoffs will eliminate 1,800 corporate positions as the retailer battles declining sales and mounting pressure on TGT stock. The Target layoffs 2025 plan cuts around 1,000 jobs directly while also removing 800 open roles, representing 8% of Target’s 22,000-person corporate workforce. Target stock has dropped 30% in 2025, making it among the worst-performing companies in the S&P 500 this year.

Target Layoffs 2025 Shake Corporate Structure as TGT Stock Slips

The Target layoffs were announced Thursday affect primarily U.S.-based employees, with 80% of cuts hitting domestic roles. Incoming CEO Michael Fiddelke, who officially takes over in February, addressed the restructuring in a staff memo.

Fiddelke had this to say:

“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.”

Why Target Layoffs Are Happening Now

Target’s layoffs come after 11 consecutive quarters of falling or weak comparable sales growth. The company has struggled with slumping sales, fierce competition from Walmart and Amazon, and shifting customer buying patterns away from home goods and clothing.

Fiddelke stated:

“It will be difficult. It’s a necessary step.”

A Target spokesperson clarified that the company did not lay off employees to cut costs, but rather as a step to rewire its organization to make decisions more swiftly.

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Impact on TGT Stock and Corporate Structure

Managers are being affected at a higher rate than individual corporate employees, according to a Target spokesman. Affected employees are being paid through January 3, with additional severance payouts provided. All U.S. corporate employees have been asked to work from home next week, with detailed changes being shared next Tuesday.

Fiddelke also wanted to evidentiate that:

“The layoffs and changes set the course for our company to be stronger, faster and better positioned.”

TGT stock dropped 6.3% when Fiddelke’s appointment was announced, as investors had hoped for an outside candidate. The retailer reports quarterly earnings next month, which will indicate whether the Target layoffs and restructuring are beginning to reverse the company’s fortunes.

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