Target to Cut Thousands of Jobs in $2 Billion Restructuring
Target (TGT) said Tuesday it planned to cut several thousand jobs, mainly from headquarters locations, as part of a restructuring that will cut $2 billion in costs over two years.
The cost-cutting forms a key plank of a revival plan outlined by Chief Executive Officer Brian Cornell, who is seeking to narrow the retailer's focus to a handful of key product lines and bolstering its online business to rejuvenate sales.
Speaking to a meeting of analysts in New York, Cornell said the restructuring was aimed at freeing up resources for investments in its focus areas. "Cutting complexity at headquarters will make us more competitive," he said.
Target also unveiled forecasts for the fiscal year to January 2016.
The company said it expected adjusted earnings a share, which excludes data breach costs and other expenses, of between $4.45 and $4.65 for the full year to January 2016, compared with last year's $4.27 and the market consensus for $4.51 according to Thomson Reuters I/B/E/S.
It projected comparable sales growth of 1.5 to 2.5 percent this fiscal year.
The company also said it had the capacity to buy back up to $2 billion worth of its own shares this fiscal year, and look to repurchase $3 billion annually from the following year and beyond.