BROOKLYN PARK, Minn. - Minnesota-based Target Corporation continues to shed positions with Tuesday's announcement of 275 job cuts, most of them coming from the company's technology sector.
Target spokesperson Molly Snyder confirmed the cuts in an email Tuesday morning, saying that the cuts are primarily from Target's Downtown Minneapolis and Brooklyn Park locations.
"As a part of our transition to an Agile technology development and support model, we conducted a comprehensive review of our current structure and capabilities," Snyder said in a written statement. "Following this review, we determined where we needed to make changes to meet the current, and anticipate the future, needs of the business. Therefore, this morning we informed our team that we are eliminating approximately 275 positions and closing an additional 35 open positions. The majority of the impact was across our technology teams and was primarily focused on areas such business analysis and project management."
Of the 275 positions eliminated, 235 are based in Minnesota while 40 will be cut from Target's operations in India.
"It is difficult to ignore the broader context," said Paul Vaaler, Carlson School of Management Professor. "Brian Cornell has made a commitment to slimming down the company substantially, severely in the headquarters area."
Snyder added that "team members" whose positions were eliminated will receive separation packages comparable to those given to other Target employees let go in a number of cuts earlier this year.
In March Target eliminated 3,100 positions, 1,700 active employees and 1,400 open jobs that were closed without hiring. In June 140 more people were let go, mostly from the business performance unit in Brooklyn Park.
Vaaler said Target is "thinking harder" about outsourcing some units and operations. He noted the decision to close and sell the Target office building on I-394 and to outsource the pharmacy operation to CVS.
"They are not averse to looking at that as part of the broader strategy of reining in costs and then figuring out what they do well, with is sell stuff," said Vaaler.
