Target Is Eliminating 1,800 Corporate Jobs

By Rosaland Tyler
Associate Editor
New Journal and Guide

Target recently announced plans to eliminate 1,800 corporate global jobs, about nine months after it announced plans to eliminate its DEI program in January.

The recent decision to cut 8 percent of its global workforce comes on the heels of President Donald Trump assuming office on Jan. 20 and issuing executive order (E.O.) 14151 titled “Ending Radical and Wasteful Government DEI Programs and Preferencing” on Jan. 20, 2025. Target promptly announced plans to end hiring goals for minority employees and to also end an executive committee focused on racial justice. Terminating its DEI programs triggered one of the most sustained corporate boycotts in recent memory, one that’s only broadened over time.

In early September, both the American Federation of Teachers (AFT) and the Chicago Teachers Union joined the boycott, which was spearheaded in the spring by Black clergy and has garnered support from civil rights organizations, including Al Sharpton’s National Action Network and the National Newspaper Publishers Association, which represents the Black Press of America.

The job cuts will affect about 8 percent of its global corporate workforce, including the closure of 800 open positions. Employees losing their jobs will receive pay and benefits through early January, along with severance packages. The cuts, which will impact managers more than individual contributors, do not affect store or supply chain roles.

Incoming CEO Michael Fiddelke, who is set to become Target’s next CEO on Feb. 1,  said in an Oct. 23 memo to employees, “It will be difficult. The truth is, the complexity we’ve created over time has been holding us back,” Fiddelke said. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”

According to the National Retail Federation, Target was the eight largest retailer in the U.S. for 2024, bringing in $106.73 billion in sales.

Unlike past corporate controversies that faded within weeks, the backlash against Target’s DEI pullback, dubbed #TargetFast, has maintained momentum for over 200 days. Led by Dr. Jamal Bryant, senior pastor of the 16,000-member New Birth Missionary Baptist Church in Stonecrest, Georgia, and a prominent civil rights leader, the boycott began as a 40-day “Target Fast” during Lent.

Asked by the PBS News Hour in August about the Target boycott, Bryant said, “After the inauguration of President Trump, 23 corporations backtracked away from diversity, equity, and inclusion, and we thought it prudent to just go after one at a time.” Noting that Black people spend more than $12 million a day at the company’s stores, “We thought that the one that was the most trafficked should be the focus of our media attention,” he said.

The majority of the affected employees work at the company’s Minneapolis headquarters, a spokesperson said.

“Adjusting our structure is one part of the work ahead of us. It will also require new behaviors and sharper priorities that strengthen our retail leadership in style and design and enable faster execution,” Fiddelke wrote in his memo.

Target, which has about 1,980 U.S. stores, has reported flat or declining comparable sales — those from established physical stores and online channels — in nine out of the past 11 quarters. The company reported in August that comparable sales dipped 1.9 percent in its second quarter, when its net income also dropped 21 percent.

On Jan. 31, the City of Riviera Beach Police Pension Fund filed a federal class-action lawsuit alleging that Target misled investors about the financial risks of scaling back DEI programs. The lawsuit claims executives knew the rollback could trigger backlash but didn’t warn shareholders, potentially exposing Target to millions in settlement costs.

According to news reports, the suit, brought in federal court in the United States District Court for the Middle District of Florida, Fort Myers Division, was filed by leading investor law firm Grant & Eisenhofer P.A.

The legal complaint alleges that Target defrauded investors by issuing false and misleading statements regarding its environmental, social, and governance (ESG) policies.

According to news reports, Target and Walmart have delayed holiday toy orders, hitting Mattel earnings.