Target will invest in stores, cut 500 jobs as new CEO takes over

Target will restructure parts of its organization and eliminate about 500 roles, company executives wrote Monday in an internal memo, as the retail giant looks to rebuild its customer base and return to growth.

The cuts include roughly 400 positions across Target’s supply chain operations and about 100 roles at the store district level. No store-level jobs will be affected but some regional offices will be closed, a Target spokesperson told NBC News.

The memo provided to NBC News came from chief stores officer Adrienne Costanzo and chief supply chain and logistics officer Gretchen McCarthy. They wrote that Target will be “consolidating the number of store districts to streamline our field structure and better empower our store directors to meet guests’ needs.”

The retail giant said the organizational changes are intended to allow the company to redirect investment into its stores, including additional labor and hours, along with a new guest experience training for employees.

Store workers will not see any changes to their starting wages, which depending on the location, are typically $15 – $24 an hour, according to a spokesperson.

Target, which has about 2,000 U.S. stores, has ceded market share to rivals like Walmart and Amazon in recent years.

Inflation has weighed on shoppers, and customers have voiced frustration over cluttered stores and inconsistent merchandise that strayed from the retailer’s identity as a polished, affordable-chic chain.

In recent years, the retailer has also been challenged by customers over its responses to controversial issues, from DEI initiatives to the recent turmoil in Minneapolis.

In an effort to reconnect with customers, the retailer rolled out what it called its “10-4 program” in 2025, an internal training that encouraged employees to make eye contact, smile and exhibit welcoming behavior when they were within 10 feet of customers— underscoring the company’s renewed focus on service as a differentiator.

Monday’s memo said the changes are expected to help employees in stores “work more efficiently and with more focus.”

Target added workers who are impacted have already been notified and will be supported with resources and benefits.

The restructuring marks one of the first major changes from Target’s new CEO Michael Fiddelke, who took over the top job at a challenging moment for the retailer.

The company reports fourth quarter and full-year earnings on March 3.