U.S retail company Target Corporation (NYSE:TGT) yesterday announced its intentions to cut several thousand jobs in an effort to reduce its $2bn (£1.3bn) costs for the next couple of years. These job cuts announced on March 4, will most likely affect employees situated at the company’s headquarter in India as well as in Minneapolis. The company noted that these cost-cutting measures are an essential part of its bid to restructure its operations in an effort to grow and actualize the company’s potential.
These measures were announced after news emanated in January that the second largest discount retailer in the United States was pulling out of the Canadian market. This withdrawal coincided with a huge loss of $5.34 bn. In addition, the company also plans to invest $2.2bn this financial year in an effort to catch up, with its retail rivals as well as revamping its merchandise, an act aimed at driving sales growth.
Brian Cornell became CEO of the retailer in August last year subsequent to a huge lapse in security protocol regarding customer’s information in 2013. This cost the company approximately $17m. Mr. Cornell noted that whilst the company’s transformation will be difficult, he noted these steps were essential for the continuity of the firm. He further noted he was sure that by engaging in this new strategy and simplifying how the organization operates fiscal prudence; the company’s creative drive will lead to sustainable growth.
Target Corporation (NYSE:TGT) is the main employer in Minneapolis. Most of its employees of approximately 26,000 workers at its base in India and in Minneapolis are expected to be now in limbo and in fear of losing their jobs due to the company’s restructuring exercise. The approximately 10,000 persons on its headquarters pay list are a prime clientele for bars and restaurants in the city of Minneapolis, and these job cuts will surely be a blow to that city’s economy.