Target Corp. is cutting about 500 roles to simplify operations, a move it says will improve the customer experience in stores.
The company is aiming to “streamline our field structure and better empower our store directors to meet guests' needs,” Chief Stores Officer Adrienne Costanzo and Chief Supply Chain and Logistics Officer Gretchen McCarthy wrote in a memo on Monday that was viewed by Bloomberg News.
This will result in an elimination of 400 roles across supply-chain sites, they wrote in the memo, adding that it will allow the company to put more money toward store staffing. The company will also cut about 100 roles supporting stores including district senior directors, human-resources business partners and food and beverage coordinator roles, according to a separate memo.
A company spokesman declined to comment.
Minneapolis-based Target is working to rejuvenate growth under its new Chief Executive Officer Michael Fiddelke. Improving store experiences is among his key priorities as he seeks to reverse the retailer's extended streak of weak sales. Recently, Target has sharpened its focus on cutting wait times and enhancing in-stock availability across about 2,000 locations. It's also directing store staff to smile, make eye contact and greet shoppers.
Shares have dropped about 12% in the 12 months ended Monday.
Other goals include using technology more efficiently and enhancing merchandise to reemphasize style.
In his first town-hall as CEO last week, Fiddelke acknowledged that the company had lost trust among some shoppers and employees and vowed to rebuild that bridge.
Target eliminated about 1,800 corporate roles last year, its first major reorganization in a decade.
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