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Less than two months after announcing it was closing all of its Canada stores, Target Corp. has committed to more cuts: U.S. corporate jobs.
The Minneapolis-based retailer’s goal is to reduce costs by $2 billion over the next two years to fuel the company’s profitability, and corporate restructuring is part of the growth plan. Most of the cuts will be corporate jobs in the U.S. and India, according to Reuters.
“These are some really tough decisions we’ve had to make, but these were the choices that were right for the business and right for our shareholders,” CEO Brian Cornell says in a March 4 article from the Star Tribune in Minneapolis.
Cornell didn’t say how many total jobs would be eliminated because he “wants to handle the situation as ‘delicately as possible’ in order to treat employees with respect,” the article says.
In addition to the corporate restructuring, Target will also trim costs by making technology and process improvements as well as supply chain and sourcing efficiencies, according to the company. Target operates 1,801 stores in the U.S.
As previously announced, the company is liquidating its Canadian division, closing 133 stores and cutting 17,600 jobs because Target Canada wasn’t profitable.
“We’re focused on our future and building the capabilities that will take us further, faster. Redefining Target will require a renewed emphasis on prioritization and innovation, and above all else, putting our guests first in everything we do,” Cornell says.
To read the Star Tribune story, click here.
To read the Reuters story, click here.
