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Rebounding Target reorganizes strategy team, cuts some roles
Internal memo cites effort to align resources and improve efficiency under new CEO Michael Fiddelke
Key Takeaways:
- Target eliminated some strategy team roles as CEO Michael Fiddelke reorganizes the group to simplify operations and improve efficiency, according to an internal memo.
- The changes aim to align resources and reduce duplication as Target seeks to reverse a multiyear slump, while investors have pushed shares up more than 30% this year.
- The company said it will help affected employees find new roles as it continues broader cost cuts and operational changes under Fiddelke’s leadership.
Target Corp. is reorganizing its strategy team in the latest move to simplify the company’s structure and improve efficiency under new CEO Michael Fiddelke.
The retailer has eliminated some roles and informed affected employees, according to an internal memo viewed by Bloomberg News. The strategy group holds an important position within the company, helping Target decide what areas to prioritize near and long term.
The changes are intended to “better align resources, reduce duplication and strengthen talent deployment,” the memo said. It added that Target is committed to helping impacted employees find new roles at the company.
A company spokesperson confirmed the memo is accurate and declined to comment further.
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Under Fiddelke, who took over as the top boss in February, Target has been seeking to reverse its yearslong slump by moving faster and making changes with more urgency. The CEO has pledged to focus on improving merchandise, customer experience and technology. Investors have welcomed such plans, with shares rising more than 30% this year.
In recent months, Target also has cut roles across various groups and has required some remote workers to relocate to headquarters in Minneapolis.
The company posted healthy quarterly results in May but cautioned that there are tougher comparisons in the coming months. Higher gas prices and inflation concerns also have fueled consumer anxiety, while competitors Walmart Inc. and Costco Wholesale Corp. continue to gain market share.
Walmart and Costco rank Nos. 1 and 53, respectively, on the Transport Topics Top 100 list of the largest private carriers in North America.
