US discount retailer Target cuts 1 700 jobs

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.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.