MINNEAPOLIS -- Retailer Target Corp. is cutting 85 jobs from its marketing department.
The Minneapolis company says in a statement Thursday that the move was part of its normal practices of re-evaluating all areas of the company.
The company says the affected employees will receive full pay and benefits through Dec. 14. Then they'll receive severance, a year of health care benefits and assistance looking for new jobs.
Target has been reducing staff, tightening consumer credit card underwriting, and paring down inventory in the recession.
Although discounters have benefited from consumers switching to cheaper stores and focusing on necessities in the recession, Target has been hurting because much of its revenues comes from fashionable nonessentials like home decor and clothing.
Earlier this year, Target let go 9 percent of its headquarters workforce. Thursday's layoffs amounted to half of 1 percent of the downtown employees.
The layoffs came on the same day as the positive economic news that the U.S. economy grew last quarter for the first time in more than a year, expanding by 3.5%
University of Minnesota economics professor Chris Phelan said it's not surprising that seemingly contradictory developments could come on the same day.
If past recessions are any guide, he said, unemployment numbers will improve long after other numbers improve and employers are feeling more confident.
"An employer is going to hire somebody when he thinks he can make more money hiring (a person), than not hiring," he said.
President Obama said he is gratified by the growth economy, which was fueled by stimulus tax credits for people buying new homes and cars.
"This is obviously welcome news and affirmation that this recession is abating and the steps we've taken have made a difference," he said.
But the president added he will measure the economy's strength by the jobs it creates.
Economists said it's not certain the growth will continue or that hiring will pick up anytime soon.
"It's not all bad news, but economic forecasting is a very hard thing to do," Phelan said.
(Copyright 2009 by KARE and The Associated Press. All Rights Reserved.)
