To view the article that is the topic of this blog visit http://www.wwd.com/business-news/target-cutting-600-jobs-at-hq-1952817?module=today.
As of Tuesday, January 27, 2009, Target has announced that the headquarters in Minneapolis and St. Paul will be laying off 600 jobs and will not be filling the 400 job openings that were currently available. In addition to jobs being affected at the headquarters, the Little Rock, Arkansas distribution center will be closing its doors, which employee 500 people. This change in the jobs and hiring is an early anticipation of the remainder of the year with the current tough economic standings and must be done in order to stay competitive with other companies.
Target is preparing itself after experiencing unexpected sales and sale declines from the previous year. Target is taking a more conservative approach to their business plan after discovering that individuals are buying only necessities and are less concerned with the apparel and other products that are not a need.
Other factors that have went into the restructuring of Target are suspending salary increases for upper management, tightening credit card underwriting and improving store productivity and reducing planned new store openings.
After reading this article about one of the largest retailers in the country, I have become very nervous about the current economic standing and being a graduating senior. I understand that the economy is extremely challenging right now, especially for businesses, but it can be even worse for students that have to pay back student loans and credit cards and do not have jobs. Target is known for being a low price retailer and it is scary that a low cost retailer is laying off people because it seems like they would be doing well if people still want to buy but are being more conscious about their spending habits. I can only hope that the economy will get better sooner than later.
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