On his first all-hands town hall in early February, incoming CEO Michael Fiddelke conceded that Target has “lost trust with shoppers and employees,” attributing the breakdown to a lack of clarity around the company’s purpose and values. Fiddelke emphasized that confusion among both staff and consumers contributed to declining engagement, noting that internal surveys showed employee morale scores falling by 12% year-over-year and customer perception ratings down 8 points on a 100-point scale during the past 12 months.

In October 2025, Fiddelke announced a reduction of approximately 1,800 corporate roles—Target’s first significant layoff since 2016—as part of a cost-containment plan designed to free up $500 million in annual savings. The cuts span finance, merchandising and technology teams, with severance packages averaging six months’ salary. Management expects the workforce reduction to lower corporate operating expenses by 15% in fiscal 2026.

Since the start of the previous administration’s tariff regime, Target scaled back several broad-based diversity, equity and inclusion programs that had accounted for nearly $75 million in annual community and supplier investments. The decision triggered at least two class-action lawsuits alleging discriminatory sourcing practices and prompted organized boycotts at 40 stores, including a week-long sit-in at the Minneapolis flagship that attracted more than 200 protesters and resulted in temporary store closures.

Fiddelke outlined a three-pillar strategy to restore confidence: 1) Reinforcing corporate purpose through a company-wide brand campaign slated to launch in Q2, 2) Reengaging frontline staff with improved training and expanded benefits—including a targeted $2,000 retention bonus for hourly team members—and 3) Relaunching community partnerships in key markets such as Chicago, Dallas and Atlanta. Executives project that these measures, paired with renewed promotional support for private-label brands, could reverse the recent 4% same-store sales decline and drive a return to low‐single-digit growth by the end of 2026.