On a cold October morning, Target told 815 employees in Minneapolis that they would lose their jobs in early January. Most of these workers hold management and technology positions at the company’s headquarters.
This is part of a larger plan to cut 1,800 jobs nationwide—1,000 people will be laid off, and 800 open positions will remain unfilled.
Michael Fiddelke, who will become Target’s new CEO in February 2026, says the company needs to move faster and remove extra layers of management. For the Twin Cities, where Target is the third-largest employer, this news hit hard.
These aren’t retail store workers—they’re analysts, tech experts, and middle managers who have built careers at the company for years, sometimes decades.
Why Target Is Struggling
Target has been losing money for nearly three years, with sales remaining either flat or in decline. The company’s profits declined by almost 2% this year, and its stock price has fallen by 65% since late 2021.
Target can’t keep up with bigger competitors like Walmart and Amazon, especially in online shopping. Things worsened in January 2025 when Target discontinued many of its diversity programs.
This decision upset civil rights groups and some members of the Dayton family who originally founded the company. The backlash led to a boycott that cost Target $12 billion in market value.
While Target has cut jobs before—eliminating 1,700 positions in 2015 after closing all its stores in Canada—these new layoffs are the largest in ten years. Retail job losses across the country are now occurring three times faster than they did last year, with companies like Amazon and UPS also cutting thousands of positions.
What Comes Next for Target
The laid-off workers come from all areas of the company, including digital marketing, cybersecurity, accounting, and senior management. They received about two months’ notice, with pay and benefits lasting until early January—timing that makes the holidays especially tough.
Many learned the news through video calls, which felt cold and impersonal. The impact goes beyond just the workers. Local businesses near Target’s Minneapolis headquarters and Brooklyn Park tech campus worry about losing customers.
City leaders note that when this many well-paid professionals lose their jobs, the whole community suffers. Target is utilizing artificial intelligence and automation to perform tasks that people once handled, particularly in data analysis and supply management.
CEO Brian Cornell will step down in February 2026 after leading the company for over a decade. His replacement, Michael Fiddelke, faces the challenge of turning things around—target plans to invest in technology, update its stores, and improve online sales.
As the holiday shopping season begins, the company must prove it can compete with fewer employees and win back customers who left during the boycott.