Target is laying off about 500 employees as part of a broader restructuring under new CEO Michael Fiddelke, who took over in October 2024. The cuts come as the retail giant faces declining sales and seeks to revamp its shopping experience to better compete in a challenging retail environment. The layoffs represent approximately 0.3% of Target's workforce of roughly 175,000 employees.

Fiddelke, who previously served as Target's CFO, has signaled a shift in strategy since taking the helm from longtime CEO Brian Cornell. The restructuring aims to streamline operations and invest more heavily in digital capabilities and store experience improvements. This marks one of the first major moves by Fiddelke to reshape the company's leadership team and operational approach.

The job cuts follow several quarters of disappointing financial results, with Target reporting same-store sales declines and margin pressures from inflation and changing consumer spending patterns. The retailer has been working to balance discounting strategies with profitability while investing in faster delivery options and exclusive brand partnerships to drive traffic.