Target axes 500 jobs to improve customer service

Target is taking a major step with its employees as it announced a cut of corporate jobs and more attention to frontline store staff.

An internal memo indicates that the retailer is cutting 500 jobs at distribution centers and regional offices, CNBC reported, as it seeks to align with new CEO Michael Fiddelke’s goal of improving the customer shopping experience.

“As part of the changes, Target is laying off around 500 people, including about 100 at the store district level and about 400 across its supply chain sites, the internal email said,” CNBC noted, citing the email sent Monday from Adrienne Costanzo, chief stores officer, and Gretchen McCarthy, chief supply chain and logistics officer.


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“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 read. “This change also fuels our ability to put significantly more payroll in our stores — primarily in additional labor and hours where needed most, but also in new guest experience training for every team member at every store.”

The latest announcement came in the wake of Target’s attempt to boost customer service last year, as it rolled out the “10-4” program, requiring employees to welcome shoppers within 10 feet by waving and smiling, while those within 4 feet of customers had to greet and offer assistance. The policy was met with mixed reactions, even from customers who found it uncomfortable.

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With a slump in sales, Fiddelke told Fox Business earlier this month that the company is “moving with urgency and focus” as “Priority 1 through 10 is accelerating Target’s growth.”

The company also announced executive-level changes this week, with Cara Sylvester becoming Target’s chief merchandising officer, and Lisa Roath, stepping in as chief operating officer.

“Fiddelke took the helm as the company aims to get back to growth. Its annual sales have been roughly flat for four years, and it cut 1,800 corporate roles last year in its first major layoff in a decade,” CNBC reported.

Customers and investors had reportedly complained that the retail giant had “lost its edge with attentive customer service and trendy, fashion-forward merchandise,” and the company had suffered from its own “self-inflicted struggles” as it “faced backlash and boycotts from customers over a string of political and social stances over the past few years.”

Frieda Powers

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