In a strategic move announced Thursday, Target announced it would cut about 1,800 corporate roles, representing about 8% of the company’s workforce worldwide, according to Business Insider. Target’s job cuts consist of cutting about 1,000 existing employees and 800 open positions, according to Reuters.
The decision comes as Target faces continued headwinds. The company has reported weak or declining same-store/same-channel sales in nine of the past 11 quarters, and its stock price has fallen for the first time in nearly three years since the start of the year. To those involved, the move signals Target is moving into cost discipline and structural transformation mode in the face of increasing competition from Walmart Inc. and Amazon.com Inc., evolving consumer discretionary spending patterns and rising import duties. Despite the job cuts, Target reaffirmed its full-year forecast, indicating that management believes the strategy will help stabilize its performance.
Earlier this year, the Florida Administrative Commission, represented by Florida Attorney General James Usmeyer and America First Legal (AFL), filed a major class action lawsuit against Target, alleging that the company intentionally misled and defrauded investors by concealing the financial risks of radical LGBTQ activities, costing shareholders tens of billions of dollars. Boyden Gray PLLC and Lawson Huck Gonzalez PLLC are also serving as plaintiffs’ counsel in the lawsuit filed in the United States District Court for the Middle District of Florida. Click here to view a copy of the complaint.
