Investors have welcomed Target’s turnaround plans, with shares rising more than 30% this year. (David Paul Morris/Bloomberg)
key takeaways:
- According to an internal memo, Target eliminated some strategy team roles as CEO Michael Fidelke reorganized the group to simplify operations and improve efficiency.
- The changes are aimed at aligning resources and reducing duplication as Target seeks to overcome a multiyear recession that has seen investors push shares up more than 30% this year.
- The company said it will help affected employees find new roles as it continues sweeping cost cuts and operational changes under Fidelke’s leadership.
Target Corp. is reorganizing its strategy team in the latest move to simplify the company’s structure and improve efficiency under new CEO Michael Fidelke.
The retailer has eliminated some roles and notified affected employees, according to an internal memo seen by Bloomberg News. The strategy group holds a key position within the company, helping Target decide which areas to prioritize in the near and long term.
The memo said the changes are aimed at “better aligning resources, reducing duplication, and strengthening talent deployment.” It said Target is committed to helping affected employees find new roles at the company.
A company spokesperson confirmed the memo is accurate and declined to comment further.
Under Fidelke, who took over as top boss in February, Target is trying to reverse its years-long slump by moving faster and making changes with more urgency. The CEO has promised to focus on improving merchandise, customer experience and technology. Investors have welcomed such plans, with shares rising more than 30% this year.
In recent months, Target has cut roles in various groups and required some remote workers to relocate to its headquarters in Minneapolis.
The company reported strong quarterly results in May but cautioned that comparisons would be tight in the coming months. Higher gas prices and inflation concerns also have stoked consumer anxiety, while rivals Walmart Inc. and Costco Wholesale Corp. have continued to gain market share.
Walmart and Costco rank No. 1 and 53, respectively, on Transportation Topics’ Top 100 list of North America’s largest private carriers.
