Target To Reportedly Beef Up Store Staffing, Cut 500 Jobs Elsewhere To Address Customer Complaints

• This restructuring will include letting go of about 500 people, comprising around 100 layoffs at the store district level and about 400 across its supply chain sites, as per the memo cited in the report.
• Newly-appointed CEO Michael Fiddelke is reportedly eyeing improved customer experience as his top priority in the firm.  
• Through this move, Fiddelke is looking to scale back the number of store districts and channel the money toward higher hours for store employees, as per the report.

American retailer Target Corp. (TGT) is reportedly increasing its store staffing, but cutting back about 500 jobs across its distribution centers and regional offices.

According to a report from CNBC, citing an internal employee memo, the company is overhauling the way it operates its stores to improve the shopping experience and win back customers who had grievances over sloppy shelves, out-of-stock items, and long checkout lines.

This restructuring will include letting go of about 500 people, comprising around 100 layoffs at the store district level and about 400 across its supply chain sites, as per the memo cited in the report.

The memo comes from the company’s chief stores officer Adrienne Costanzo, and chief supply chain and logistics officer, Gretchen McCarthy, and was emailed to Target employees.

Shares of TGT were down about 0.09% at the time of writing.

Restructuring Rationale

Newly-appointed CEO Michael Fiddelke, who took the helm at Target on Feb. 1, is reportedly eyeing improved customer experience as his top priority in the firm.  

Through this move, Fiddelke is looking to scale back the number of store districts and channel the money toward higher hours for store employees, as per the report.

“This change also fuels our ability to put significantly more payroll in our stores – primarily in additional labor and hours where needed most, but also in new guest experience training for every team member at every store,” the email reportedly said.

While CNBC said that a Target spokesperson did not specify the exact additional investment that is on the cards for Target stores, they said the layoffs will not impact starting wages for store workers, which currently range from $15 to $24 per hour based on location.

In an earlier report from Bloomberg, Target’s Fiddelke reportedly said in his first town hall that the company had lost trust with some of its shoppers and employees. Fiddelke said he would work on rebuilding that connection. He also noted that the company hadn’t been “clear enough about who we are.”

Prior Layoffs

In October 2025, Target announced that it would cut 1,800 corporate jobs, marking its first major round of job cuts in a decade, as per an earlier CNBC report. The layoffs were announced in a memo by Fiddelke.

This represented about 8% of Target’s workforce at the time and included approximately 1,000 employee layoffs and around 800 positions the company said would not be filled.

The retailer announced the job cuts amid efforts to revive growth after about four years of relatively flat sales, as market competition from companies like Walmart Inc. (WMT) and Costco Wholesale Corp. (COST) has intensified amid a tougher economic milieu.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TGT shares declined from ‘neutral’ to ‘bearish’ territory over the past 24 hours amid ‘normal’ message volumes.

Shares of TGT have declined about 12% in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also Read: Nike-Owned Converse To Lay Off Employees Amid Strategic Changes To Recapture Sales Growth: Report

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