Feb 9 (Reuters) – Target said on Monday it is streamlining its retail model as it looks to put money towards more hours for frontline store employees, eliminating around 500 office and supply chain jobs.
In an internal memo seen by Reuters, the big-box retailer said it will reduce the number of store districts – the regions that Target’s stores are grouped into – to facilitate payroll for additional labor and hours, as well as guest experience training for store staff.
“It’s an immediate addition of store payroll to support more hours and more training dollars for our store teams,” a Target spokesperson told Reuters, adding the announcement was one of the first big moves from new CEO Michael Fiddelke to drive customer experience at Target stores.
Fiddelke, who assumed charge earlier this month, said in October the company would cut around 1,800 corporate roles in its first major layoff in around a decade.
The company will lay off around 100 people at the store district level and about 400 across its supply chain sites, the internal email sent to employees by Adrienne Costanzo, chief stores officer, and Gretchen McCarthy, chief supply chain and logistics officer, said.
“We have already shared the news with team members directly impacted, and we’ll be supporting them through this transition with a range of resources and benefits,” the memo said.
The news was first reported by CNBC.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Krishna Chandra Eluri)
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