- Target announced Tuesday that it will cut "several thousand" jobs over the next two years as part of a $2 billion cost savings plan.
- The news came during a call to investors, where the retailer also divulged its strategy to up its spending on digital initiatives. Target said it expects digital sales to increase 40% in 2015.
- The company said in a following statement that the cuts will be "concentrated at Target's headquarters locations."
While staying purposely vague on the job cuts announcement, there was a bit more detail provided on how, as CEO Brian Cornell puts it, Target will start "on a clear path to growth."
Along with an increase in digital spending, the retailer will invest deeply in its grocery departments, omnichannel operations, and style, baby, kids, and wellness merchandise categories. Target says it will also focus on smaller format stores like Target Express and City Target.
Cornell, who took the top spot last May, certainly has high goals for Target. He seems to be taking very strategic steps to differentiate the retailer from Wal-Mart and other competitors, most noticeably with Target's new free-shipping minimum announced last week.
"We’re focused on our future and building the capabilities that will take us further, faster," Cornell said. "Redefining Target will require a renewed emphasis on prioritization and innovation, and above all else, putting our guests first in everything we do."