Target planning 'several thousand' job cuts, primarily in Minneapolis
Not even a month after Target laid off 550 Twin Cities employees, company officials announced they plan to cut their local corporate workforce even more. The job cut plan was announced at a financial community meeting in New York. A bit more information comes via this statement sent to Fox 9 by Target spokesperson Molly Snyder:
We expect that there will be the elimination of several thousand positions, primarily at our corporate headquarters, over the next two years. We have indicated to our team and our shareholders that we are moving quickly as we transform and are committed to making tough decisions. We don't have timing to share today on our corporate restructuring, but do anticipate that in the coming weeks and months we will continue to provide our team with further details, which will include the elimination of several thousand positions.
According to a Star Tribune report from the New York meeting, Target is aiming for about $2 billion in savings.
From January -- Target Corp. rescinds dozens of job offers
Target employs about 13,500 in its corporate operations throughout the Twin Cities. The company is downtown Minneapolis's largest employer, with about 10,000 employees, though that number is down from more than 12,500 at the beginning of 2014 and looks like it'll continue to shrink going forward.
Some wonder about what today's news will mean for downtown Minneapolis in general, where many new condo buildings house Target employees:
In a Target news release, the company announced its focus going forward will be the following four areas:
-- Improving the online shopping experience for Target's digital shoppers
-- Products in the "Style, Baby, Kids and Wellness" area, which the company says together announced for more than 25 percent of sales last year
-- Offering more location-specific products to differentiate stores from one another
-- Flexible formats like TargetExpress and CityTarget, both of which "cater to guests in rapidly-growing, dense urban areas"
The release confirms that the company plans to realize $2 billion in cost savings. Here's an excerpt:
These savings will be realized through operations, technology and process improvements; supply chain and sourcing efficiencies; and corporate restructuring. The restructuring will be concentrated at Target's headquarters locations and focus on driving leaner, more efficient capabilities, removing complexity and allowing the organization to move with greater speed and agility. This includes the establishment of centralized teams based on specialized expertise and the elimination of several thousand positions over the next two years. This year, Target expects to invest between $2 and $2.2 billion in capital expenditures, including a $1 billion investment in technology and supply chain.
"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," Target CEO Brian Cornell says. "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's stock price shot up today as news of the company's restructuring plan circulated.
Read Target's release for yourself here.