Target (NYSE:TGT) said Monday that it’s stepping up store staffing, but eliminating about 500 jobs in distribution centers and regional offices as it tries to win back shoppers who have complained about sloppier shelves, out-of-stock items and longer checkout lines.
In an internal employee memo, the big-box retailer said it’s making changes to the way it runs and oversees stores to improve the customer experience, a top goal of the company’s new CEO Michael Fiddelke.
To do that, Target said it will reduce the number of store districts — the geographic areas that its nearly 2,000 stores are broken into, which have dedicated staffing — and put money toward more hours for frontline store employees.
As part of the changes, Target is laying off around 500 people, including about 100 at the store district level and about 400 across its supply chain sites, the internal email said.
“This change also fuels our ability to put significantly more payroll in our stores – primarily in additional labor and hours where needed most, but also in new guest experience training for every team member at every store,” the email said.
A Target spokesperson declined to specify the amount of additional investment planned for Target stores, but said the announcement will not change starting wages for store workers, which range from $15 to $24 per hour depending on the location.
TGT shares ditched 17 cents to $115.42.
