Target is firing thousands of workers
Target is cutting thousands of jobs within the next two years as part of a $2 billion cost-savings plan, the company announced Tuesday.
The cuts will primarily affect positions at the company headquarters.
"The restructuring will be concentrated at Target's headquarters locations and focus on driving leaner, more efficient capabilities, removing the complexity and allowing the organization to move with greater speed and agility," the company said in a statement.
Target employs more than 350,000 workers globally. A more specific timeline for the job cuts will be revealed in the coming weeks and months, a spokeswoman told Business Insider.
"We have indicated to our team and our shareholders that we are moving quickly as we transform and are committed to making tough decisions," she said. She emphasized that the company has not made any comprehensive changes to any store-level positions or announced any plans to close US store locations in 2015.
Target CEO Brian Cornell told investors Tuesday that the company "lost its balance" after the recession, according to the Minneapolis Star Tribune.
He said Target needed to prioritize four main categories of merchandise: style, baby, kids, and wellness. Those categories accounted for more than a quarter of the company's sales last year.
Target will be investing more in its grocery offerings, he said.
"While we’re in the early days and there’s no doubt that transformation can be challenging, we’re taking the steps necessary to unleash the potential of this incredible brand," Cornell said. "I'm encouraged by our early momentum, and am confident that by implementing our strategy, simplifying how we work, and practicing financial discipline, we will ignite Target’s innovative spirit and deliver sustained growth."
Target is likely cutting jobs in part to recoup losses from its Canadian business, which the company recently abandoned.
The expansion into Canada cost Target about $4.4 billion and racked up more than $2 billion in losses.
Target had promised investors that the Canadian business, which was launched less than two years ago, would be profitable by the end of 2013.
The company hired Cornell in August and replaced the president of its Canadian operation to try to execute a turnaround. But its efforts failed.
Cornell announced in January that Target would be pulling out of Canada and closing more than 130 stores.
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