Target cuts 1,000 jobs as Michael Fiddelke named CEO to lead turnaround amid sales decline
Target will cut about 1,000 jobs and freeze several hundred open roles as Michael Fiddelke is named CEO, with a February 2026 handover, aiming to reverse multi-year sales declines and simplify operations amid tight competition and profit pressure.
Key takeaways
- Job cuts: About 1,000 employees will be laid off and several hundred open roles will not be filled — sources include Los Angeles Times and Retail Systems.
- Efficiency plan: The moves are part of a broader $2 billion efficiency and restructuring drive to simplify operations and cut duplicate roles (Retail Systems).
- Leadership shift: COO Michael Fiddelke, a 2003 intern who later served as CFO and COO, will formally become CEO in February 2026 with Brian Cornell moving to executive chair for a 17-month transition (Target press release, CBS News Minnesota).
Key information
- Job cuts & hiring freezes: Target will eliminate roughly 1,000 roles and leave several hundred open positions unfilled. Sources: Los Angeles Times, Retail Systems.
- Cost plan: Part of a $2 billion efficiency and restructuring program to reduce waste and internal silos (Retail Systems).
- Sales & profit pressure: Comparable sales fell 1.9% in the most recent quarter and net income was down about 21% as Target cites weak store traffic, inflation, tariffs and tougher rivals (Digital Commerce 360, Los Angeles Times).
- Leadership change: Michael Fiddelke — a long-tenured executive who began as a 2003 intern — will ascend to CEO in February 2026; Brian Cornell becomes executive chair to support the transition (Target press release, CBS News Minnesota, Digital Commerce 360).
- Investor reaction: Shares fell after the board chose an insider, signaling investor skepticism about the speed and depth of the turnaround (Los Angeles Times, Retail Systems).
- Strategic priorities: Fiddelke aims to sharpen merchandise design, improve the shopping experience, use technology to reduce fulfillment costs, and maintain community and employee investments (Los Angeles Times, MPR News, Retail Systems).
- Operational problems: Reports cite empty-shelf complaints, product shortages, boycotts in some categories, and trouble attracting shoppers (Adweek).
Why Target is cutting jobs now
Target says the layoffs and hiring freezes are intended to accelerate a $2 billion efficiency program to cut waste and eliminate duplicate roles across the organization. Executives frame the changes as a way to focus resources on stores, customers and online fulfillment.
Analysts and insiders note the decision also responds to a persistent slide in store traffic and sales since 2022 that has eroded margins and pressured profits. The company’s public release ties the restructuring directly to Fiddelke’s mandate to improve operations and free resources for higher-priority investments (Retail Systems, Digital Commerce 360).
Sales decline and the retail landscape
Target’s recent quarter showed a 1.9% drop in comparable sales and about a 21% decline in net income. Executives attribute declines to lower in-store traffic, inflation’s lingering effects on spending, tariffs raising costs, and intense competition from low-price and fast-delivery rivals such as Walmart and Amazon (Digital Commerce 360, Los Angeles Times).
Analysts say Target’s brand and store footprint remain advantages, but reversing the sales slide will require improved product assortment, smoother inventory, and clearer reasons for shoppers to choose Target over lower-priced or faster-delivery alternatives.
About Michael Fiddelke and the leadership shift
Michael Fiddelke joined Target as an intern in 2003 and rose through finance and operations, holding CFO and COO roles and overseeing stores, supply chain and fulfillment. The board chose him for his deep operations experience; Brian Cornell will transition to executive chair and support a 17-month handover before Fiddelke assumes the CEO role in February 2026 (Digital Commerce 360, CBS News Minnesota, Target press release).
“The board’s choice of an insider reflects a bet that deep knowledge of operations and supply chain will help address inventory and fulfillment problems,” industry observers say.
Investors and critics react
After the CEO announcement and the cost plan details, Target shares fell. Some investors were disappointed the board did not bring in an external turnaround specialist, signaling skepticism about whether an internal leader can quickly reverse a multi-year decline. Others defended the choice, arguing operational expertise is critical given Target’s supply-chain and store challenges (Los Angeles Times, Retail Systems).
Operational priorities: what the new CEO must fix
- Merchandise: Improve style and assortment so products better match customer demand (Los Angeles Times).
- In-store experience: Boost store environment and service to bring shoppers back (MPR News).
- Technology & fulfillment: Deploy tech to speed fulfillment, reduce costs, and smooth inventory flows (Retail Systems).
- Community & employees: Maintain investments in communities and employees even as overhead is pared back (Retail Systems).
Balancing cost cuts with investment is critical: aggressive reductions risk damaging morale and store service if they are too deep or poorly targeted.
Implications for the Inland Empire, California
Economic impact
Target operates many stores across Southern California, including the Inland Empire. Corporate and field-level job cuts and hiring freezes can ripple through local operations and vendors, reduce store hours or staffing, and affect distribution-center roles if fulfillment strategy shifts (Los Angeles Times, Retail Systems).
Consumer choices and local retailers
Inland Empire shoppers may face smaller assortments and less frequent restocking at some locations, potentially pushing residents toward competitors such as Walmart, Amazon or local discount retailers and changing foot traffic patterns at malls and shopping centers (Digital Commerce 360).
Political and social effects
Local elected officials and workforce advocates may respond to layoffs by pressing companies to protect jobs or increase local hiring. The Inland Empire’s large blue-collar workforce and logistics industries mean changes to Target’s fulfillment choices could have tangible effects on warehouse and delivery employment (Retail Systems).
Cultural relevance and community programs
Target has long supported schools and local causes. If corporate cost cuts reduce local sponsorships or program support, Inland Empire nonprofits and schools could feel the impact — though the company says it plans to keep community and employee investments as part of its strategy (Retail Systems).
Practical effects for residents
Shoppers should expect possible changes in store staffing, merchandise assortment and restocking cadence. Online fulfillment windows and same-day services could shift if Target reprioritizes fulfillment nodes. Employees should monitor company communications and local job postings (Target press release, Adweek).
Reporting note & sources
This article draws on reporting and company statements from the following sources:
