US retailer Target Corp is cutting ‘thousands’ of jobs at its corporate headquarters and Bengaluru in India as part of a USD 2 billion cost saving exercise.
The company, which employs around 13,500 workers at its corporate headquarters and 2,900 in India, today announced restructuring plans under which it is targeting to save USD 2 billion over the next two years to fuel its growth and drive profitability.
“These savings will be realised through operations, technology and process improvements; supply chain and sourcing efficiencies; and corporate restructuring,” the company said in a statement.
The restructuring will be concentrated at Target’s headquarters locations and focus on driving leaner, more efficient capabilities, removing complexity and allowing the organisation to move with greater speed and agility, it added.
The company said it would establish “centralised teams based on specialised expertise and the elimination of several thousand positions over the next two years”.
According to the company’s website, Target employs more than 2,900 team members in India and are engaged in work that supports the global strategy across business areas such as technology, marketing, human resources, finance, merchandising, supply chain, property development, analytics and reporting.
Besides, the Minneapolis-based discounter also plans to invest between USD 2 and USD 2.2 billion in capital expenditures, including a USD 1 billion investment in technology and supply chain.
“This year, Target expects to invest between USD 2 and USD 2.2 billion in capital expenditures, including a USD 1 billion investment in technology and supply chain,” the company said.
Commenting on the new initiatives being planned by the company, Target Corporation Chairman and CEO Brian Cornell said that following a thorough, strategic review of the company’s business, coupled with a careful evaluation of the changing retail landscape, they have identified the key initiatives that will put Target on a clear path to growth.
“We’re focused on our future and building the capabilities that will take us further, faster. Redefining Target will require a renewed emphasis on prioritisation and innovation, and above all else, putting our guests first in everything we do,” he added.
Target Corporation serves guests at 1,795 stores.