Target Corp. (NYSE: TGT) has just confirmed the layoffs we and other reports discussed earlier today. As we expected, this is a very small number of jobs, and it appears to be more corporate jobs rather than "store level" positions.
The layoffs at the headquarters locations will affect 9% of staff.They will include roughly 600 employees and 400 open positions,primarily in the Twin Cities area and will become effective today.
On top of this, Target said that it will shut its distribution centerin Little Rock, Arkansas, later this year. That move is expected toaffect another 500 jobs. distribution center, which currently employs500 people, later this year.
The company said that the very soft economy is making it take a moreconservative approach to business planning. It will take $0.03 off its EPS for Q4-2008 because of the job cuts. The companynoted that the annualized savings should exceed the charge.
This will not make any of the freshly fired workers feel any better.But this is a tiny number of positions being cut in relation to thecompany’s size. The company currently operates 1,682 stores, 34distribution centers, and it employs approximately 350,000 peopleworldwide.
Jon C. Ogg
January 27, 2009
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