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By Andrew Stanton
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Target is laying off about 500 people in distribution centers and regional offices, according to a new report citing an internal company memo, which comes on the heels of Longtime CEO Brian Cornell stepping down at the beginning of February.
Newsweek reached out to Target for comment via email.
Why It Matters
The announcement reflects major layoffs impacting hundreds of employees as the company has been reeling from a difficult few years defined by boycotts and protests, as well as profit declines. The company is working to win back support not only from those who have stopped shopping at the company due to political reasons, but also those who have complained about the shopping experience. The changes come as the company has faced several years of stagnant annual sales.
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Target Layoffs 2026: What to Know About Job Cuts and Store Investments
An internal memo, first reported by CNBC, outlined changes Target is making this year. The precise number of cut jobs has not been made public—only that it is around 500. The WARN Act states that mass layoffs occur when 500 employees of any company are laid off during a 30-day period, according to the organization Legal Aid at Work.
In total, about 100 people at the store district level and about 400 people across supply chain sites would be laid off, according to the report.
But the company will also be investing more money into store labor, increasing payroll hours and providing new guest experience training for team members. Wages will not be changing for employees, according to CNBC.
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“This change also fuels our ability to put significantly more payroll in our stores – primarily in additional labor and hours where needed most, but also in new guest experience training for every team member at every store,” Adrienne Costanzo, chief stores officer, and Gretchen McCarthy, chief supply chain and logistics officer, wrote in the email, per CNBC.
More details about that investment remained unclear.
It will also reduce the number of store districts, CNBC reported.
Target's Past Troubles and New CEO
The report comes as the company has faced political boycotts from both the right and the left over recent years. Some customers boycotted Target for selling—and later pulling from the shelves—Pride merchandise. Others have boycotted the company over its reversal on Diversity, Equity and Inclusion policies following President Donald Trump’s return to office.
This year will also be a pivotal point for Target leadership. Longtime CEO Brian Cornell stepped down at the beginning of February, being replaced by Michael Fiddelke, who served as chief operating officer and chief financial officer prior to his new role.
According to CNBC, customers and vendors have also complained about what they view as a decline in customer service and trendy merchandise. Its latest earnings report from the third quarter of 2025 stated that net sales were 1.5 percent lower than in 2024, while comparable sales declined 2.7 percent.
A CNN report from August 2025 found that analysts believe the company, which has sought to establish itself as a premium alternative to other retailers like Walmart, has “lost its spark.”
Jamie Meyers, senior analyst at Laffer Tengler Investments, told MarketWatch in August, “Target seems to be experiencing something of an identity crisis, and we believe the company needs someone from the outside. It’s unclear what they represent as they’re not an office retailer, a low-budget chain, a dollar store or a direct competitor to Walmart or Amazon.”
Target Layoffs and the 2026 Economy
The layoffs come amid broader concerns about the U.S. economy and the cost of living. The inflation rate stood at 2.7 percent, down from 2.9 percent in December 2024, according to the U.S. Bureau of Labor Statistics.
The latest YouGov poll revealed gloomy consumer sentiment about the economy—only 28 percent of respondents said they believe the economy is excellent or good. It surveyed 1,672 adults from January 30 to February 2, 2026, and had a margin of error of plus or minus 3.2 percentage points. It was conducted via web-based interviews.
Other large retailers like Amazon have also laid off employees this year.
What People Are Saying
Target CEO Michael Fiddelke, then the company’s COO, said in a November earnings report: “We’re laying the foundation for a stronger, faster and more innovative Target. It’s grounded in our purpose of bringing joy to our guests and focused on growth. We know there’s work to do, and we have the best team in retail to do it. With clear priorities guiding us, I’m proud of our progress and confident we’re on the right path.”
Former Target CEO Brian Cornell acknowledged boycotts as a factor contributing to declining sales in a 2025 earnings call: “We faced several additional headwinds this quarter including five consecutive months of declining consumer confidence, uncertainty regarding the impact of potential tariffs and the reaction to the updates we shared on belonging in January. While we believe each of these factors played a role in our first quarter performance, we can't reliably estimate the impact of each one separately.”
What Happens Next
The full-year earnings call for 2025 is set for Tuesday, March 3, 2026.
Update 02/09/25 7:20 p.m.: This article's headline has been updated for accuracy.
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