Target CEO cuts 1,800 jobs to lift top-item inventory by 150 bps
New CEO Michael Fiddelke cut 1,800 corporate jobs to fund store improvements and outlined four priorities including merchandising authority and technology acceleration. On-shelf availability for Target’s top 5,000 items—representing 30% of unit sales—improved by over 150 basis points year-over-year.
1. Store Operational Issues
Target stores have seen messy shelves, picked-over bins, and frequent stockouts on key items, driving customers online or to competitors and eroding brand trust.
2. Strategic Shift Under New CEO
Since taking the helm on Feb. 2, Michael Fiddelke prioritized merchandising authority, guest experience, technology acceleration, and team community strengthening, supported by cutting 1,800 corporate jobs to reinvest in store operations.
3. Inventory Improvement Metrics
Target reported a year-over-year improvement of more than 150 basis points in on-shelf availability for its top 5,000 items, which represent 30% of total unit sales, though the CEO emphasized the need for further gains.