Inside Target's Leadership Shakeup Amid 500 Job Cuts

Target has announced a sweeping leadership reorganisation alongside significant workforce reductions as newly installed CEO Michael Fiddelke moves quickly to reshape the retailer's strategic direction.

The changes, revealed just days after Michael formally began his tenure on 10 February, signal an immediate effort to concentrate resources on guest facing operations whilst streamlining decision-making authority.

The company will cut roughly 500 jobs across its regional offices and distribution sites in the US, according to an announcement made on 9 February.

Executives told employees the cuts, alongside a reorganisation of geographic store districts, would help the company boost store staffing, adding "labour and hours where needed most".

The reductions add to 1,800 corporate job cuts announced in October 2024.

"Elevating the guest experience is a key priority towards growth," executives say in an internal email, noting that in-store workers will receive new "guest experience" training.

The workforce changes appear designed to redirect investment from back office functions towards customer facing roles.

Streamlining leadership reporting lines

The leadership reset, announced on 10 February, places two Executive Vice Presidents in roles reporting directly to the CEO from 15 February. Cara Sylvester has been named Chief Merchandising Officer, whilst Lisa Roath becomes Chief Operating Officer.

At the same time, Chief Commercial Officer Rick Gomez will depart and Jill Sando, Chief Merchandising Officer for Apparel and Accessories, Home and Fun101, will retire following transition periods. Target is also conducting an external search for a Chief Guest Experience and Marketing Officer.

Announcing the moves, Michael framed them as foundational to the company's next phase. "It's the start of a new chapter for Target and we're moving quickly to take action against our priorities that will drive growth within our business.

"These leadership changes align the right talent and expertise with key roles, and simplify our structure so we can advance our strategy with greater speed, clarity and accountability."

Consolidating merchandising and operational authority

The appointment of Cara as a singular Chief Merchandising Officer consolidates responsibility for product authority under one leader. Previously Chief Guest Experience Officer, she brings experience spanning digital, loyalty and marketing.

According to Target, she will "strengthen and expand Target's authority in style and design through its merchandising capabilities, product development, assortment design and partner collaborations".

Lisa's elevation to Chief Operating Officer reinforces the focus on execution. Formerly Chief Merchandising Officer of Food, Essential and Beauty, she has led across merchandising, supply chain and stores.

In her new remit she will focus on "scaling Target's style and design focus across the full operation, improving speed, efficiency and execution that elevates the shopping experience".

"Cara and Lisa are proven leaders who deeply know our business and can drive change that delivers results," Michael says. "As they lead two of our most critical functions, we've got the right foundation to make bold, strategic moves and execute our plans for Target's future."

Strategic priorities driving transformation

The reorganisation closely follows the strategic agenda Michael outlined in a message marking his first week as CEO on 2 February. He wrote: "As we move forward, our strategy is focused on four priorities."

He defines those priorities as "leading with merchandising authority by curating with conviction - bringing together design, style and value in a way only Target can". The second is "elevating the guest experience by making every store visit and digital interaction easier, more inspiring and more welcoming".

Third, "accelerating technology to remove friction, enable our teams and create more personalised, joyful experiences for guests", and the final priority is "strengthening our team and communities by investing in our people, building future-ready skills and growing alongside the communities we serve".

The leadership changes come alongside confirmation that Target expects to report fourth quarter 2025 sales, full-year earnings per share (EPS) and full-year Adjusted EPS in line with prior guidance.

Together with the workforce reductions, the measures concentrate authority at the top, simplify decision-making and redirect resources towards guest facing roles.