Empowering Frontline Staff While Reducing 500 Office and Supply Chain Positions
The Big Money Show analyzes the latest earnings from major retailers like Target, TJ Maxx, and Lowes.
Target has recently announced significant changes aimed at optimizing its retail operations. On Monday, the company revealed plans to enhance its workforce by investing more in frontline store employees while simultaneously cutting approximately 500 positions in its office and supply chain sectors.
According to an internal memo obtained by FOX Business, Target will be reducing the number of store districts—regions where Target stores are grouped—to better allocate payroll for more workers and hours. This restructuring is also intended to improve guest experience training for store staff. CNBC was the first to report on this development.
The layoffs are expected to affect around 100 employees at the store district level and about 400 across the company’s supply chain locations. This information was shared in an email from Chief Stores Officer Adrienne Costanzo and Chief Supply Chain and Logistics Officer Gretchen McCarthy.
“We have already shared the news with team members directly impacted, and we’ll be supporting them through this transition with a range of resources and benefits,” the memo stated.
TARGET’S NEW CEO TAKES OVER AMID SLUMPING SALES, UNREST IN MINNEAPOLIS
Target has suffered from sluggish sales in recent years and is aiming to reverse that trend. (Michael Nagle/Bloomberg via Getty Images)
The restructuring aims to “fuel 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 executives noted.
Despite these changes, a Target spokesperson confirmed that the starting pay for workers will remain unchanged, although the specific amount being invested in the stores was not disclosed.
New CEO Michael Fiddelke, who stepped into the role earlier this month, had previously indicated plans to cut about 1,800 corporate roles as the big box retailer undergoes its first major layoffs in nearly a decade.
TARGET BETS ON $5B STORE REVAMP PLAN TO REVIVE SALES
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 115.52 | -0.03 | -0.03% |
Fiddelke is focused on leading a turnaround that will drive growth at Target, especially as the retailer has faced declining sales in recent years.
On Tuesday, the company announced key executive changes, appointing Cara Sylvester as chief merchandising officer and Lisa Roath as chief operating officer.
In a memo to employees, Fiddelke emphasized his priorities, which include refining Target’s merchandise mix and enhancing both the in-store and online shopping experiences.
TARGET SLASHES PRICES ON THOUSANDS OF ITEMS IN BID TO REVIVE SLIPPING SALES
Target CEO Michael Fiddelke took charge of the retail giant earlier this month. (Elizabeth Flores/The Minnesota Star Tribune via Getty Images)
Fiddelke also mentioned plans to leverage technology to streamline operations and enhance the customer experience. He expressed a commitment to investing more in employees and strengthening community ties.
“Priority 1 through 10 is accelerating Target’s growth,” Fiddelke stated in an email to FOX Business, emphasizing the company’s urgency and focus on these initiatives.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
FOX Business’ Daniella Genovese and Reuters contributed to this report.
The Big Money Show analyzes the latest earnings from major retailers like Target, TJ Maxx, and Lowes.
Target has recently announced significant changes aimed at optimizing its retail operations. On Monday, the company revealed plans to enhance its workforce by investing more in frontline store employees while simultaneously cutting approximately 500 positions in its office and supply chain sectors.
According to an internal memo obtained by FOX Business, Target will be reducing the number of store districts—regions where Target stores are grouped—to better allocate payroll for more workers and hours. This restructuring is also intended to improve guest experience training for store staff. CNBC was the first to report on this development.
The layoffs are expected to affect around 100 employees at the store district level and about 400 across the company’s supply chain locations. This information was shared in an email from Chief Stores Officer Adrienne Costanzo and Chief Supply Chain and Logistics Officer Gretchen McCarthy.
“We have already shared the news with team members directly impacted, and we’ll be supporting them through this transition with a range of resources and benefits,” the memo stated.
TARGET’S NEW CEO TAKES OVER AMID SLUMPING SALES, UNREST IN MINNEAPOLIS
Target has suffered from sluggish sales in recent years and is aiming to reverse that trend. (Michael Nagle/Bloomberg via Getty Images)
The restructuring aims to “fuel 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 executives noted.
Despite these changes, a Target spokesperson confirmed that the starting pay for workers will remain unchanged, although the specific amount being invested in the stores was not disclosed.
New CEO Michael Fiddelke, who stepped into the role earlier this month, had previously indicated plans to cut about 1,800 corporate roles as the big box retailer undergoes its first major layoffs in nearly a decade.
TARGET BETS ON $5B STORE REVAMP PLAN TO REVIVE SALES
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 115.52 | -0.03 | -0.03% |
Fiddelke is focused on leading a turnaround that will drive growth at Target, especially as the retailer has faced declining sales in recent years.
On Tuesday, the company announced key executive changes, appointing Cara Sylvester as chief merchandising officer and Lisa Roath as chief operating officer.
In a memo to employees, Fiddelke emphasized his priorities, which include refining Target’s merchandise mix and enhancing both the in-store and online shopping experiences.
TARGET SLASHES PRICES ON THOUSANDS OF ITEMS IN BID TO REVIVE SLIPPING SALES
Target CEO Michael Fiddelke took charge of the retail giant earlier this month. (Elizabeth Flores/The Minnesota Star Tribune via Getty Images)
Fiddelke also mentioned plans to leverage technology to streamline operations and enhance the customer experience. He expressed a commitment to investing more in employees and strengthening community ties.
“Priority 1 through 10 is accelerating Target’s growth,” Fiddelke stated in an email to FOX Business, emphasizing the company’s urgency and focus on these initiatives.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
FOX Business’ Daniella Genovese and Reuters contributed to this report.
