On a cold October day in Minneapolis, Target informed 815 corporate employees that they would lose their jobs in early January.
These employees, many of whom were from downtown and the Brooklyn Park tech campus, were not store workers but rather managers, analysts, and tech specialists. The news came in remote calls and letters, not in person.
Most affected were middle managers, a layer the company now sees as too big and slow for today’s needs.
The Bigger Blade
The Minnesota layoffs were just part of Target’s larger plan to cut 1,800 positions—1,000 actual layoffs and 800 unfilled jobs that will now stay empty.
Incoming CEO Michael Fiddelke said Target had become slow and overcrowded with extra layers of management. He described the cuts as necessary to make the company “faster and better positioned.”
Pay and benefits will continue until January, but the culture of a stable, growing headquarters has changed.
The Struggling Giant
Target’s business has struggled for nearly three years, with sales flat or dropping in nine out of eleven recent quarters.
Profits fell almost 2% this year, and the stock has lost 65% of its value since late 2021. Target, once a big winner during the pandemic, is now losing ground to Walmart and Amazon.
Declining sales, canceled orders, and trimmed profits all pushed leadership to act—just as CEO Brian Cornell prepares to leave in February 2026.
The DEI Firestorm
In January, Target pulled back on its diversity and inclusion programs. This move sparked anger, particularly among Black leaders and civil rights groups, who called for boycotts of the store.
The boycott had a negative impact: customer traffic dropped, and the company’s value tumbled by over $12 billion following the change. Families of Target’s founders even criticized the company.
Sales declined for several quarters, and Target’s brand reputation suffered more than its rivals.
The Decade’s Largest
Many news reports called these 2025 cuts Target’s biggest ever, but that’s not accurate.
In 2015, following Target’s failure in Canada, the company cut 1,700 headquarters jobs and left 1,400 positions unfilled—larger than the current round of layoffs.
Still, the 2025 cuts matter: they’re the biggest in ten years for a company that was riding high during the pandemic.
Now, Target is downsizing from the heart of its home business, not a failed overseas venture.
Twin Cities Tremor
Target is Minnesota’s third-largest employer. Cutting over 800 local jobs hits both the workers and the downtown economy hard—these were professional and well-paid roles.
With fewer people working downtown, local businesses will feel the loss.
The tech campus in Brooklyn Park is also shrinking, raising worries for the area’s technology jobs and economy.
The Human Cost
Those laid off included team leaders, digital marketers, cybersecurity experts, senior directors, accountants, and more.
Many employees have spent years at Target, developing expertise that the company cannot easily replace.
Workers got around two months’ notice, but the timing makes finding new jobs challenging.
Target told many employees to work from home during layoff week, making the news even more impersonal and difficult for them to process.
The Retail Recession Signal
Target isn’t alone—Amazon, UPS, and other big companies also announced tens of thousands of layoffs at the same time.
Retail job losses are growing three times faster than they were last year, and retail stores have added fewer new jobs than at any point during the previous 25 years.
Experts say layoffs before the holiday shopping season signal stores are worried about weak sales in the months ahead.
The Walmart-Amazon Squeeze
Target faces tough competition. Walmart’s stock rose, while Target’s declined. Walmart expands its online sales, offering pickup and delivery, which draws customers away from Target.
Amazon continues to win with its fast delivery and extensive selection.
Target saw shopper visits decline almost every week in 2025, as customers shifted to larger, faster rivals in nearly every key demographic.
The AI Automation Angle
Target said its cuts were not just about saving money—it wants to eliminate layers of management and utilize technology to work smarter.
Like other large companies, it is using artificial intelligence to handle tasks that previously required specialists and managers, particularly in areas such as data analysis and logistics.
The primary reason for many job cuts is that AI can now perform tasks more efficiently and cost-effectively.
The New CEO’s Mandate
Michael Fiddelke, with 20 years at Target, faces pressure to turn things around as the new CEO.
He is familiar with all aspects of the company from his past roles, but investors are watching to see if an insider can address the company’s deep-seated problems.
He wants Target stores to be better stocked, more attractive, and supported by strong technology—layoffs are just the start of wider changes he believes are needed to make Target a leader again.
Cornell’s Legacy
Brian Cornell, who led Target through growth and challenges since 2014, is leaving.
He fixed major problems after Target’s data breach, but recent years have been more challenging, marked by inventory blunders and weaker sales.
Cornell’s raises and digital investments initially helped, but competition, inflation, and brand setbacks stalled the growth.
Now he passes the job to Fiddelke, staying on as board chair.
The Severance Terms
Those who lost their jobs received more than the minimum notice Target was required to give.
The law requires companies to provide 60 days’ notice for mass layoffs, but Target gave employees 67 days’ notice.
Employees will receive full pay and benefits through January 3 and a severance package (amount not disclosed).
Support services, such as job counseling, are offered; however, the job market for professionals remains tough, especially in the new year.
The WARN Act Investigation
Soon after the layoffs, lawyers began investigating whether Target had truly followed the letter of the law regarding the notices.
They want to determine if the company provided sufficient warning to avoid legal penalties; if not, Target may be required to pay back wages.
Legal experts are reviewing dates and paperwork, which could lead to additional payments for laid-off employees, depending on the findings of investigators.
The Holiday Season Gamble
Announcing layoffs ahead of the holiday shopping season is risky—both store profits and team spirit matter most at this time.
Target will introduce a surge of new products for the holidays to offset shopper doubts; however, forecasters expect the U.S. will experience the weakest holiday retail growth in years.
Reduced staff, slower consumer spending, and bad press may all make this a tough season for Target.
The Strategic Pivot
Target aims to transform its operations by reducing management overhead, investing heavily in technology, and enhancing its online sales and advertising capabilities.
Plans include opening new stores, remodeling existing ones, and utilizing AI to recommend products and optimize stock management.
However, cutting so many corporate jobs at once could slow down these big plans or leave the company without enough experienced staff to deliver on promises.
The Broader Retail Reckoning
Target’s struggles are part of a bigger trend. High inflation, online shopping, tariffs, and rapid automation are hurting many retail companies.
Major chains are reorganizing their operations as retail hiring slows and layoffs rise.
Mid-sized companies such as Target, caught between price leaders like Walmart and web giants like Amazon, face the most challenging choices and significant risks in the year ahead.
The Public Perception Battle
The layoffs made waves online, where workers shared their frustrations about the remote and impersonal nature of the firings.
Debates raged about whether promoting from within is smart for Target or whether it needed an objective outsider with fresh ideas.
Some say the loss of brand trust over recent decisions is hurting Target; others blame stiff competition and a changing economy.
The 2015 Parallel
In 2015, Target cut even more headquarters jobs after its failed attempt in Canada. Then, layoffs were made to save money for new investments following a clear business disaster.
Today’s cuts are different—they’re the result of slow, ongoing losses at home due to competition and shifts in customer demand, not a one-time mistake.
This makes the challenge of turning things around even more complicated this time.
Leaner But Riskier
Cutting 1,800 jobs is a gamble that streamlining will help Target compete in a world driven by technology and formidable rivals.
Trimming middle management could help decisions move faster, but the company risks losing valuable experience, hurting morale, and weakening its position.
With big plans but significant headwinds, Target enters 2026 with fewer staff, higher stakes, and an uncertain outlook.