The American company is going to conduct mass layoffs for the first time in decades. The company may fire around 1800 employees, which is being planned. The financial condition of the company is not good as it is facing sales and competition challenges.
The company’s new CEO Michael Fidelke has announced this. Fidelke has disclosed this through a mail sent to the employees. He said around 1,000 corporate employees would be laid off, while 800 vacant positions would be closed. Overall this is about 8 percent of the company’s global corporate workforce.
Fidelke said that the company’s structure has become complex. He said that this complexity has set back the target, because too many layers and overlapping responsibilities are slowing down the decision-making process.
Employees asked to work from home
The company has asked all corporate employees in the US to work from home next week as the company finalizes its restructuring process. People affected by the layoffs are expected to be informed on Tuesday. The purpose of this step is to streamline work rather than reduce costs.
Company going through difficult times
This Minneapolis-based company has faced many challenges in the last one year. The company’s sales have declined and the company has faced criticism for some of its cutbacks. Whereas once this company was considered the leader in this sector.
Its competition from giants like Walmart, Amazon and Costco has also intensified, while changing consumer habits have affected Target’s sales of home goods and clothing. Due to which the company is changing its strategy. The new CEO of the company has announced this change.
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