Target Corporation, which operates 22 stores in Iowa, as well as a distribution center in Cedar Falls, has announced it will layoff thousands of its employees over the next few years as part of a multi-billion-dollar restructuring plan meant to address the company’s recent lagging performance.
CEO Brian Cornell and members of his leadership team presented the plan yesterday to investors. During that presentation, he said:
“Following a thorough, strategic review of our business, coupled with a careful evaluation of the changing retail landscape, we have identified the key initiatives that will put Target on a clear path to growth,” said Cornell. “We’re focused on our future and building the capabilities that will take us further, faster. Redefining Target will require a renewed emphasis on prioritization and innovation, and above all else, putting our guests first in everything we do.”
The announcement comes one week after the company’s fourth-quarter earnings statement showed fourth quarter 2014 adjusted earnings per share of $1.50, an increase of 14.9 percent from $1.31 in 2013, and full-year adjusted earnings per share of $4.27, a decrease of 2.6 percent from $4.38 last year. The company, however, was taking a huge hit in its Canadian operations, resulting in a $5.59 loss per share during the quarter.
Minneapolis, which is the home of Target Corporation headquarters, will likely see big changes in the years ahead. According to the Minneapolis/St. Paul Business Journal, roughly 10 percent of the downtown office space in Minneapolis is either owned or leased by the company, which employs about 10,000 people in the city.