Target Cuts 1,700 Jobs

Target Corp. Tuesday informed 1,700 of its employees that their positions were being eliminated as part of a cost-cutting plan disclosed one week ago. Target said last week during its annual investor conference that it would eliminate “several thousand positions,” principally at its Minneapolis headquarters, over the next two years as it seeks to generate $2 billion in cost savings during that time span. In a regulatory filing with the Securities and Exchange Commission Tuesday, Target said the first round of job cuts would result in severance costs of about $100 million, “all of which are expected to require cash expenditures.” Those expenses will be incurred as a pretax charge in Target’s first-quarter financial results. It didn’t disclose the effective date of the terminations or the distribution of cuts throughout its organization. The cuts are one part of a transformation of the business being undertaken by Brian Cornell, who became chairman and chief executive officer of Target in August. Among its priorities are a greater focus on a “channel-agnostic approach” to its business, investments in the technology to support digital growth and emphasis on its apparel business and newer store formats, such as TargetExpress and CityTarget. Target estimated at its investor

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