• Target's cuts will affect about 8% of its 22,000-strong global workforce.
• About 80% of the cuts will be in U.S. ranks.
• Michael Fiddelke, Target's incoming CEO, says the move removes excess management layers.

Target Corp. will eliminate 1,000 corporate jobs and another 800 open roles in its biggest workforce reduction in a decade, according to management communication to employees on Thursday.

“The truth is, the complexity we've created over time has been holding us back,” Michael Fiddelke, Target's incoming CEO, said in a memo to staff, as reported by the Wall Street Journal.“Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”

The move impacts 8% of Target's approximately 22,000 workers globally, with around 80% of the cuts planned in its U.S. ranks, according to the WSJ.

The company will share details of the changes next Tuesday and has asked all U.S. corporate employees to work from home next week, according to the memo. 

The development comes amid years of sluggish growth at the big box retailer. Target grew by offering fashionable items and slightly trendy everyday goods, which helped it differentiate from low-cost retail chains like Walmart (WMT); however, gains from the strategy have diminished in recent years.

Meanwhile, Target's decision to cut back on gay Pride merchandise, as well as some Diversity, Equity, and Inclusion (DEI) policies, earlier this year hurt sales and angered some investors and workers. Boycotts of Target resulting from the company's stance on DEI weighed on its first-quarter earnings.

Target's stock is down 30.3% year-to-date, heading for the worst yearly performance since 2021. In August, the company announced that Fiddelke, a company veteran and currently the COO, will take over as the CEO in February next year. The stock fell soon after, with analysts saying that an outside hire might have been a better move.

On Stocktwits, the retail sentiment for TGT was 'bearish' as of late Thursday, unchanged from the prior day. The company will report third-quarter results on Nov. 19.

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