Target cuts 500 roles, invests in store payroll

Target cuts 500 roles, invests in store payroll

Target is eliminating about 100 roles at the store district level and 400 roles relating to supply chain as part of an effort to invest more into store payroll and improve the customer experience.

The mass retailer is consolidating its store districts to streamline its structure and standardizing the field operating model for its supply chain operations, per an internal email Target shared with Retail Dive.

“For our stores and supply chain teams at the center of delivering that experience, we’re making some changes to strengthen our frontline by simplifying our organizational structures,” Target’s chief stores officer, Adrienne Costanzo, and chief supply chain and logistics officer, Gretchen McCarthy, said in the Monday email. “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.”

Affected employees have been directly notified and will receive support resources from Target.

This latest round of job cuts adds to Target’s announcement in October that it would cut 1,000 corporate staff and close 800 open roles. Affected employees from that move received pay and benefits through early January. 

The store district and supply chain cuts also come just a week after Michael Fiddelke formally took on the CEO position at Target. Around the same time, Target made major changes to its C-suite, including naming a new chief merchandising officer and chief operating officer.