Target's New CEO Implements Major Restructuring with Wage Freeze and Job Cuts
Target employees across the United States will see their wages remain stagnant as newly appointed Chief Executive Officer Michael Fiddelke initiates a sweeping corporate restructuring that eliminates hundreds of positions. According to internal documents obtained by NBC News, the retail giant's starting pay scale, which typically ranges from fifteen to twenty-four dollars per hour depending on geographic location, will not increase under the new plan.
Streamlining Operations Amid Persistent Sales Decline
The restructuring represents Fiddelke's first significant strategic move since officially assuming leadership on February 1st, 2026. The reorganization is expected to result in approximately four hundred positions being cut from Target's supply chain operations, with an additional one hundred roles eliminated at the store district management level. Company executives have emphasized that these reductions will not affect frontline store positions, though some regional offices will be closed as part of the consolidation effort.
In a memorandum distributed to staff on Monday, Target leadership explained that the changes are designed to help store employees "work more efficiently and with more focus" by simplifying organizational structures and redirecting resources closer to customer-facing operations. The company has confirmed that affected employees have already been notified and will receive transition support, including continued access to benefits and career resources.
Competitive Pressures and Consumer Challenges
Target, which operates nearly two thousand stores nationwide, has faced mounting competitive pressure from retail behemoths Walmart and Amazon as consumer shopping patterns continue to evolve. The Minnesota Star Tribune reports that the company has recorded twelve consecutive quarters of either weak or declining sales performance, creating significant financial strain. Target's stock value has plummeted more than twenty percent over the past year, with corporate executives attributing the decline to reduced consumer spending on discretionary categories like home décor and apparel.
The broader economic environment has exacerbated these challenges. Persistent inflation has forced many shoppers to reduce nonessential purchases, directly impacting the types of merchandise that have traditionally driven Target's brand identity. Simultaneously, customers have voiced increasing dissatisfaction with store conditions, complaining about disorganized layouts and inconsistent merchandise availability that have diminished the retailer's reputation for polished, affordable-chic shopping experiences.
Broader Transformation Efforts and Cultural Controversies
This latest restructuring follows earlier cost-cutting measures, including the elimination of eighteen hundred corporate positions in October. Target is simultaneously pursuing multiple modernization initiatives, including artificial intelligence-powered shopping partnerships with technology firms OpenAI and Google, along with a comprehensive overhaul of its beauty department. The company's shop-in-shop collaboration with cosmetics retailer Ulta is scheduled to conclude in August.
Beyond operational challenges, Target has found itself embroiled in heated cultural and political debates in recent years. The retailer has faced criticism from multiple constituencies regarding its handling of diversity, equity and inclusion initiatives, alongside backlash related to public safety concerns and civil unrest in its Minneapolis headquarters city.
Customer Experience Initiatives and Future Outlook
In an attempt to regain customer loyalty, Target introduced its "10-4 program" last year, an internal training initiative that encourages employees to make eye contact, smile, and project greater hospitality when within ten feet of shoppers. This customer service enhancement represents one component of the company's broader strategy to improve the in-store experience while navigating complex market conditions.
The Independent has reached out to Target representatives for additional commentary regarding these restructuring measures and their implications for both employees and long-term corporate strategy. As the retail landscape continues to shift dramatically, Target's ability to balance operational efficiency with employee satisfaction and customer retention will prove critical to reversing its prolonged sales decline.
