Minneapolis-based Target Corp. today unveiled a restructuring plan that will include the elimination of 3,100 jobs, according to a report by The Associated Press.
The realignment will include laying off 1,700 workers and permanently eliminating another 1,400 open positions. Most of the cuts will come at the company’s headquarters.
At a meeting today for the investor community, Target chairman and chief executive officer Brian Cornell and members of his leadership team presented the restructuring plan.
“Following a thorough, strategic review of our business, coupled with a careful evaluation of the changing retail landscape, we have identified the key initiatives that will put Target on a clear path to growth,” Cornell said. “We’re focused on our future and building the capabilities that will take us further, faster. Redefining Target will require a renewed emphasis on prioritization and innovation, and above all else, putting our guests first in everything we do.”
The retailer’s differentiation in the marketplace will be driven by stronger merchandising authority and a shopping experience that is centered on ease and inspiration, with mobile serving as the front door to all of Target, Cornell said. The company intends to create a headquarters team that is “more agile, efficient and guest-focused.”
Target’s store opening plans will increasingly focus on new, smaller and more flexible formats such as TargetExpress and CityTarget, which cater to guests in rapidly-growing, dense urban areas. Throughout 2015, the retailer will open eight TargetExpress locations across the country.
The company expects cost savings of $2 billion over the next two years, through operations, technology and process improvements; supply chain and sourcing efficiencies; and corporate restructuring.
“While we’re in the early days, and there’s no doubt that transformation can be challenging, we’re taking the steps necessary to unleash the potential of this incredible brand,” said Cornell. “I’m encouraged by our early momentum, and am confident that by implementing our strategy, simplifying how we work, and practicing financial discipline, we will ignite Target’s innovative spirit and deliver sustained growth.”
