Target to lay off 1,800 employees as boycotts and sluggish sales take a toll

Target announces plans for its first major round of layoffs in years as the retailer struggles with stagnant sales and community boycotts.

Target is still feeling the impact of the ongoing (yes, we’re still going) boycotts. This week, the retailer announced that it’s preparing for its first major round of layoffs in a decade as the company tries to recover from four years of stagnant sales. 

“We’ve announced changes to our corporate structure today in an effort to accelerate our strategy and return to growth,” a company spokesperson told ABC News. “It’s important to understand that we did not take these actions to save cost; adjusting our global HQ structure is the first step in rewiring our organization to be agile and make faster decisions.” 

The restructuring, which is reportedly planning to cut 1,800 corporate jobs, will eliminate approximately 800 positions that will no longer exist and lay off 1,000 employees, with managerial roles expected to feel the most impact. In a memo to employees, Target leadership told them that this 8% cut in its workforce is to reduce “layers and overlapping work.” 

“The truth is, the complexity we’ve created over time has been holding us back. Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life,” Michael Fiddelke, COO and incoming CEO of Target, continued in a note to all of Target’s HQ Team Members. 

Ahead of the restructuring announcements, the retailer encouraged all its US corporate employees to work from home next week. However, Target says that those affected will receive severance packages and support, along with benefits and pay until Jan. 3, 2026. 

Though the company has reportedly seen a lull in sales over the last four years, it’s clear the recent boycott due to its DEI rollback has not helped Target’s growth plans. When Target announced its plans to roll back elements of its DEI initiatives and commitments, consumers, activists, and community leaders encouraged communities, especially Black communities, to boycott the retailer. What started as a 40-day Target fast has since become a full boycott for many Black consumers. In the subsequent months, consumers saw the impact of their activism as multiple reports of the decline in Target sales and stock emerged, so much so that even peak shopping seasons like back-to-school couldn’t increase Target’s sales and foot traffic.  

Since then, Target has not only undergone leadership changes but has also had unsuccessful meetings with civil rights leaders like Al Sharpton and the Congressional Black Caucus. 

“The leadership change doesn’t mean anything without a culture change,” Washington-based DC Boycott Target Coalition previously shared, explaining that the retailer needs to see that its previous commitment to diversity and inclusion should be “more important than bowing to an administration that is filled with racism, failure, and hatred.”