The New York Times reports that Target has announced that it will eliminate several thousand jobs over the next 24 months, mostly at headquarters level, "as it struggles to overcome a string of difficult years."
According to the story, "The fresh job cuts at home are part of an effort to save $2 billion over the next two years, from a combination of corporate restructuring at its headquarters, leaner supply chains and more efficient product sourcing, Target said in a statement. The company will set up centralized teams at its headquarters that will tackle specific areas of the business, like analyzing shopper data. And it will reinvest $2 billion to $2.2 billion in its business, including $1 billion in technology and improvements to the supply chain."
The move is consistent with a series of decisions by CEO Brian Cornell aimed at making the company more efficient and effective - closing down its Canadian stores (which generally were conceded to be a debacle), improving its food selection, and working to regain consumer trust after a data hacking incident that put the personal and financial data of its customers at risk.
According to the story, "The fresh job cuts at home are part of an effort to save $2 billion over the next two years, from a combination of corporate restructuring at its headquarters, leaner supply chains and more efficient product sourcing, Target said in a statement. The company will set up centralized teams at its headquarters that will tackle specific areas of the business, like analyzing shopper data. And it will reinvest $2 billion to $2.2 billion in its business, including $1 billion in technology and improvements to the supply chain."
The move is consistent with a series of decisions by CEO Brian Cornell aimed at making the company more efficient and effective - closing down its Canadian stores (which generally were conceded to be a debacle), improving its food selection, and working to regain consumer trust after a data hacking incident that put the personal and financial data of its customers at risk.
- KC's View:
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Target has a long way to do, but one gets the sense that Cornell has a vision for what the retailer needs to be, the narrative it needs to communicate, and a sense of the path that the company needs to take to get there. Which is certainly a good beginning.
