Target CEO resignation: What we know
Target CEO Brian Cornell is stepping down after the company’s revenue declined this quarter. Michael Fidelke will take over.
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About two months after naming a new CEO, Target said it plans to cut an estimated 1,800 corporate jobs to offset the retailer’s weak sales, according to multiple reports citing a memo to employees.
Target’s board of directors on August 20 named Michael Fidelke as the retail giant’s next CEO, replacing veteran CEO Brian Cornell. Fidelke, who will succeed Cornell in 2026, announced the layoffs in a memo to Target employees at the retailer’s headquarters in Minneapolis, Minnesota, as reported by CNBC and CNN.
According to CNN, the layoffs are Target’s first major layoffs in 10 years.
“The truth is, the complexity we have built up over time is holding us back,” Fidelke said in the memo, according to CNBC. “There are too many layers and duplication of effort, slowing down decision-making and making it difficult to turn ideas into reality.”
Fidelke added that while the layoffs are difficult, they are also “a necessary step to build Target’s future and enable the progress and growth we all desire,” CNBC reported.
USA TODAY reached out to Target on Thursday, Oct. 23, but did not receive a response.
How drastic are Target’s headcount reductions?
The layoffs are a combination of about 1,000 employee layoffs and about 800 unfilled positions, representing about an 8% reduction in Target’s corporate workforce, according to CNBC.
The newspaper again cited the memo and reported that employees affected by the layoffs will be notified on Tuesday, October 28th. Target told CNBC that workers affected by the layoffs will receive pay and benefits through Jan. 3, 2026, in addition to severance pay.
Despite the company’s layoffs, Target confirmed that its stores and retailers’ roles in the supply chain have not been affected, the newspaper reported.
How much did Target’s sales decline?
Target announced its second quarter financial results on August 20th. According to the report, Target had net sales of $25.2 billion in the second quarter, down 0.9% from a year earlier.
Comparable sales in the second quarter were down 1.9% and operating income was $1.3 billion, down 19.4% year-over-year.
After announcing its first-quarter results in May, Target said it expected full-year sales to decline by a single digit. The company previously expected net sales growth to be about 1%. Additionally, Target stock is down 65% from its all-time high in late 2021, according to CNBC.
According to Reuters, Fidelke said on a call with media about the company’s second-quarter earnings report that the company needs to “move faster and more quickly.”
“My number one goal is to get us back on a growth track,” Fidelke said.
In his memo, Fidelke outlined three ways Target is trying to adjust its organizational structure. Leading with merchandising authority, elevating the guest experience with every interaction, and “accelerating technology that enables teams and delights guests.”
Who is Target’s new CEO, Michael Fidelke?
Mr. Fidelke, 49, has worked at Target for more than 20 years, starting as an intern in 2003, according to the company’s website.
Mr. Fidelke served as Target’s chief financial officer until he was appointed as Target’s chief operating officer in January 2024.
In addition to assuming the role of CEO, Fidelke will join Target’s board of directors on February 1, 2026, the company said. Mr. Cornell has served as the company’s CEO since 2014 and will serve as executive chairman of Target’s board of directors after his term.
“After more than 20 years at Target, I understand the power of our brands, the talent of our team, and our special position in the retail industry,” Fidelke said in a statement.
Jonathan Limehouse covers breaking and trending news for USA TODAY. Please contact JLimehouse@gannett.com..
