US retailer Target has said that it will eliminate 9% of head office staff in a bid to cut costs.
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The Minneapolis-based retailer said the planned workforce reduction would include the elimination of 600 employees and 400 open positions.
Target will also close a distribution centre in Little Rock, Arkansas, before the end of the year – with the loss of a further 500 jobs.
In an announcement yesterday (27 January), Target said that its earnings performance was coming under pressure from weaker-than-expected sales.
The company said that this, combined with the likelihood of continued economic difficulties in 2009, had prompted it to take a more conservative approach to the business.
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By GlobalData“We are clearly operating in an unprecedented economic environment that requires us to make some extremely difficult decisions to ensure Target remains competitive over the long-term,” president and CEO Gregg Steinhafel said.
Target is the latest in a line of US retailers to announce job cuts.
Last week, Delhaize’s Food Lion said it was eliminating 80 head office positions.
However, non-food retailers have, to date, been hit hardest by the downturn: 34,000 jobs will be lost as part Circuit City’s liquidation; while on Monday Home Depot said it will cut 7,000 positions.
