MINNEAPOLIS–Target is cutting 600 positions, or 9 percent, of its headquarters’ population. This includes the elimination of about 600 employees and 400 open positions mostly in the Twin Cities area. Most changes are effective today.
The discounter will also close its Little Rock, Ark., distribution center, which employs 500 people, later this year.
The cuts are Target’s latest move to manage expenses and minimize the number of affected employees, the company said in a statement.
The retailer recently suspended salary increases for senior management, suspended share repurchase activity, reduced planned new store openings and cut entertainment and other headquarters operating expenses.
“We are clearly operating in an unprecedented economic environment that requires us to make some extremely difficult decisions to ensure Target remains competitive over the long-term,” said Gregg Steinhafel, president and chief executive officer, in the statement.
In recent months, Target has experienced weaker-than-expected sales, which is pressuring earnings performance, the company said.
A Target official did not return calls at press time to confirm how the cuts will affect the home merchandising staff.