Target Corp. (NYSE: TGT) has confirmed that it plans to cut workers, but details are still not out. We have checked around and the cuts appear to be in the Minneapolis headquarters rather than broad-based cuts at the store level. We have also heard that the number will be "a few hundred jobs" out of the headquarters rather than a massive layoff at the store level that would affect thousands of its employees. But we do not yet have any formal figures, so do not be too surprised if the numbers are larger.
The story originally broke on the Minneapolis Star Tribune, and details should be coming soon from the company. The mostrecent data puts full-time employees at a level of 366,000 on acompany-wide basis.
Now that the Christmas season is behind us, we expect most large retailers to shed up to 10% to 15% of their ranks in the coming weeks to months. Some will be brought back in time for the "back to school season," if the economy improves.
Jon C. Ogg
January 27, 2009