Target is making significant moves across both its executive leadership and its workforce as the retailer looks to simplify operations and regain momentum in a challenging retail environment.
In recent weeks, the company announced new C-suite appointments while also confirming plans to eliminate approximately 500 corporate and store support roles, underscoring a broader organizational reset.
Leadership Changes Signal Structural Shift
Target has named two new executives to oversee core areas of its business, creating distinct roles for chief operating officer and chief merchandising officer. The move is designed to sharpen accountability across store operations, supply chain, and merchandising as the retailer works to improve execution and financial performance.
Michael Fiddelke, who previously served as chief financial officer, has been appointed chief operating officer. In this role, Fiddelke will oversee Target’s stores, supply chain, fulfillment operations, and real estate. Target said the change reflects the increasing complexity of running an omnichannel retail network that spans physical stores, digital fulfillment, and last-mile delivery.
At the same time, Target promoted Rick Gomez to chief merchandising officer, expanding his responsibilities across merchandising, planning, and owned brands. The company said consolidating merchandising leadership under one executive is intended to strengthen assortment clarity, speed decision-making, and better align product strategy with consumer demand.
The leadership restructuring follows several years of operational challenges for Target, including inventory imbalances, margin pressure, and inconsistent traffic. By separating operational execution from merchandising strategy at the highest level, Target is signaling a renewed focus on fundamentals.
Job Cuts Reflect Push for Efficiency
Alongside leadership changes, Target confirmed it will cut roughly 500 roles across its organization, including positions tied to store support and payroll operations. The company characterized the reductions as part of an effort to simplify internal processes and reduce redundancy rather than a response to immediate financial distress.
Target executives said the job cuts are aimed at making teams more agile and better aligned with how the company operates today. As more functions become centralized and technology-driven, certain roles are no longer required at the same scale. The layoffs are expected to be completed in the first half of the year.
While the number represents a small percentage of Target’s total workforce, the move reflects broader trends across large retailers that are reassessing corporate staffing levels after rapid expansion during the pandemic. Retailers are increasingly focused on leaner support structures as sales growth normalizes and cost pressures persist.
Connecting the Dots Between Leadership and Labor
Taken together, the leadership appointments and workforce reductions point to a coordinated strategy rather than isolated actions. Target is attempting to streamline decision-making at the top while removing layers of complexity throughout the organization. The goal is to improve speed, accountability, and cost discipline across a business that operates nearly 2,000 stores and a massive digital fulfillment network.
The changes also reflect the evolving role of stores within Target’s omnichannel strategy. As stores increasingly function as fulfillment hubs for digital orders, operational excellence has become as critical as merchandising creativity. Elevating operations to the C-suite while tightening support functions reinforces that priority.
Implications for the Retail Industry
Target’s moves mirror similar actions by other big-box and department store retailers navigating a post-pandemic retail landscape. Leadership realignments, corporate layoffs, and renewed emphasis on execution are becoming common as retailers balance investment in growth with the need to protect margins.
For the broader retail and supply chain community, Target’s actions highlight the importance of organizational design in an omnichannel world. As retailers continue to integrate stores, digital platforms, and supply chains, leadership structures and workforce models must evolve in parallel.
What Comes Next
Target has said it remains focused on long-term growth, guest loyalty, and operational reliability. How effectively the new leadership structure delivers improved performance will be closely watched by investors, suppliers, and competitors alike.
The success of the changes will ultimately be measured not just in cost savings, but in improved customer experience, stronger assortments, and more consistent execution across channels.
More about Target:
Staff Report
Staff Report
Ashton York
