Target Layoffs 2026: US Retail Giant To Cut 500 Jobs in Supply Chain and Management Under New CEO Michael Fiddelke To Streamline Operations

Minneapolis, February 11: Target has announced the elimination of approximately 500 roles across its corporate and regional divisions as part of a strategic restructuring under newly appointed CEO Michael Fiddelke. The layoffs, confirmed on February 9, 2026, primarily impact district-level management and the company’s supply chain network as the retailer shifts its focus toward in-store operations.

The job cuts follow a challenging period for the Minneapolis-based giant, which has faced stagnant sales and increased competition. According to company reports, the move is designed to create a "leaner model" by removing middle-management layers that have reportedly slowed decision-making processes. The decision marks the first major leadership shake-up since Fiddelke took the helm. Salesforce Layoffs 2026: Tech Giant Lays Off Nearly 1,000 Employees From Agentforce AI and Marketing Teams Amid Executive Shakeup.

Target Layoffs: Focus on In-Store Guest Experience

The primary objective of the Target layoffs in 2026 is to redirect capital toward frontline store employees. By cutting roughly 100 district-level positions and 400 supply chain roles, the company plans to reinvest the savings into increased payroll for store-level staff. This pivot aims to revitalise the "cheap chic" identity that originally defined the brand.

Target expects this reallocation of resources to fund enhanced "guest experience training" and provide more hours for existing staff. Industry analysts note that the success of this strategy hinges on whether these savings lead to visible improvements, such as cleaner aisles and shorter checkout lines, which have been points of contention for shoppers in recent years.

Target Supply Chain and Management Restructuring

The restructuring involves a significant consolidation of store districts and a standardisation of the supply chain field model. Target is moving away from what critics have termed "over-management" of logistics to focus on the human interaction at the point of sale. The 400 roles being cut within the supply chain are part of an effort to resolve persistent out-of-stock issues.

These layoffs follow a larger workforce reduction in late 2025, during which nearly 1,800 corporate roles were phased out. This ongoing trend suggests that Target is aggressively stripping away administrative bloat to protect its market share against competitors like Walmart and Amazon, both of which have been expanding their physical and digital footprints.

Target CEO Michael Fiddelke Taking Decision of Layoffs

Target CEO Michael Fiddelke is making a high-stakes bet that the brand’s recovery lies in the physical retail environment rather than administrative oversight. While the market generally rewards operational efficiency, there are concerns regarding the potential demoralisation of the remaining workforce. The company maintains that these steps are necessary to ensure long-term stability. Realme Layoffs: Realme India Confirms Cutting Jobs as Part of Internal Restructuring, Says Not Linked to Oppo Integration.

From an economic perspective, the shift from USD-heavy administrative salaries to hourly store wages is a clear attempt to rebuild customer trust. If the gamble pays off, Target could see a resurgence in guest loyalty; however, if store conditions do not improve, the retailer risks further alienating its core demographic in a high-velocity e-commerce market.

(The above story first appeared on LatestLY on Feb 11, 2026 05:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).