Target Corp. cuts 9 percent of headquarter workforce, 1,000 positions
Categories: The Economy Sucks
Not even our precious and seemingly invincible Target is free from layoffs. Target Corporation announced layoffs to employees this morning at their Minneapolis headquarters, WCCO reported. Now we have the details from Target officials.
The cuts affect 9 percent of their workforce at headquarter locations. This includes about 600 layoffs and eliminating 400 open positions primarily in the Twin Cities. The majority of these changes are effective today.
Target will also close its Little Rock, Ark. distribution center later this year. The center currently employs 500 people.
More details below.
Target headquarter employees responded to the layoffs, saying they were surprised by the announcement.
More from the Target announcement:
The company has recently undertaken other actions to manage expense and capital investment and minimize the number of affected employees. These actions include suspending salary increases for senior management, suspending share repurchase activity, tightening credit card underwriting and credit granting, implementing initiatives to improve store productivity, reducing planned new store openings, and cutting outside contractor support, travel, 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 CEO of Target Corporation.
Headquarters employees affected by the announcement will continue to receive their full pay and benefits through April 1, after which they will receive a comprehensive separation package based on their years of service. As part of that package, Target also will provide these employees with 12 months of continued Target health care benefits in addition to 12 months COBRA benefit, and outplacement support to assist them in transitioning to their next position. Little Rock distribution center employees will be offered positions at other Target distribution centers, or will receive comparable severance.
According to the Minneapolis-St. Paul Business Journal, "the company's same-store sales fell 4.1 percent in December, following a decline of 10.4 percent in November. In fact, the company hasn't reported a monthly same-store sales increase since last June."
Write Comment
Email to Friend
Print Article
