US discount retailer Target cuts 1 700 jobs

The move is part of a restructuring to save the retailer $2 billion.

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By :  ,  Financial Analyst

US discount retailer Target Corp. has announced it is laying off 1,700 workers and won't fill another 1400 vacancies. The decision follows last week’s announcement that the company would eliminate several thousand jobs as part of a restructuring programme aimed at saving $2 billion (1.34 billion) in costs over the next two years.

The aim of the job cuts is to make the company a "much more agile, effective organisation", the company said in a statement. Target spokeswoman Molly Snyder said the cuts will come primarily at headquarters locations in the Minneapolis area.

17,600 job cuts in Canada

“While today’s news is difficult, it’s important to know that we will continue to make investments in our business and team—particularly in areas such as digital, personalisation, data and analytics, and engineering—to position Target for future success," said Molly Snyder.

Target said each laid-off employee will get at least 15 weeks of pay as well as additional severance amounts based on their length of time with the retailer.

Target has struggled in recent years after a massive credit card hack broke shoppers’ trust. It also had to close its Canadian subsidiary, losing billions of dollars and shedding about 17,600 employees through 133 stores.

The retailer has also suffered from competition from online retailers. It said it is continuing to invest in areas like digital and data and analytics.

Brian Cornell, who took the reins at Target last year, told the Huffington Post: "I'm absolutely convinced that when we come back together three years from now, we will be a different company. We'll be a leader in the digital and mobile commerce space."

Shares in Target were down one per cent at $77.77 in midday trade in New York.

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