Target Corporation is shifting its workforce priorities to place a greater emphasis on the in-store customer experience, according to an internal memo referenced in recent reporting. The retailer said it will direct more of its payroll to store-level labor even as it reduces headcount in distribution centers and regional offices.
The company framed the change as a response to customer frustration over merchandise availability and growing checkout delays. Target has not posted an uptick in annual sales over the last four years, and management is taking steps intended to improve on-the-ground service and product availability.
The reorganization will include a cut of about 500 positions. The internal communication specified a breakdown of roughly 100 district-level roles and around 400 roles spread across the company’s supply-chain sites. Target said the savings generated from reducing corporate and supply-chain management layers will be reinvested into frontline staffing.
Operationally, the firm will compress the number of store districts that supervise its nearly 2,000 locations. The company indicated that the additional payroll in stores will be targeted primarily toward adding labor and hours where those resources are most needed. The note also said some of the funding will support a new guest-experience training program that will be delivered to every team member at every store.
The move represents an early operational shift under new leadership. Michael Fiddelke, who previously served as the company’s chief financial officer and chief operating officer, assumed the chief executive role earlier this month. The internal message and related changes are part of efforts to address service and inventory concerns as management seeks to restore the brand’s competitive position.
Market reaction was muted: Target stock was trading near flat following publication of the memo. The company’s reallocation plan is aimed at redirecting payroll from corporate and supply-chain positions into hourly store roles and training programs intended to improve customers’ in-store experiences.
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