Target Slashes 1,800 Corporate Roles in AI-Driven Shakeup

Target is cutting roughly 1,800 corporate jobs today as the retail giant turns to artificial intelligence to fix its slumping sales. The move wipes out about 8% of its headquarters staff. It is the company’s biggest payroll cut in a decade. Incoming CEO Michael Fiddelke says the cuts will help the company move faster, but for 1,000 workers in Minneapolis, it means the end of the line.

Key Facts

• 1,800 Total Cuts: Target is laying off 1,000 employees and closing 800 open positions that will never be filled.
• Severance Deal: Impacted workers will stay on the payroll with benefits until January 3, 2026.
• Office Impact: The cuts hit the Minneapolis headquarters and Brooklyn Park offices hardest. Store employees are safe.
• Source: Fast Company, Fox Business

Cutting the Complexity

Management says the company has become too slow. In a memo to staff, Fiddelke said, “The complexity we’ve created over time has been holding us back.” He claims that too many layers of bosses and “overlapping work” have made it hard to get things done. The plan is to strip away these layers so the company can react quicker to trends.

The AI Replacement

This isn’t just about saving money. It is about changing how Target works. The company is using new AI tools to do jobs that humans used to handle. A new internal tool called “Target Trend Brain” now uses generative AI to spot fashion fads and decide on pricing. By using these tools, Target plans to fix its merchandising mistakes without needing as many people in the office.

Grim Outlook for HQ

The mood in Minneapolis is dark. While store workers and supply chain teams are safe, the corporate offices are emptying out. The 1,000 people losing their jobs today are mostly from leadership and support teams. Those let go will get severance packages, but they are entering a tough job market right before the holidays.