Target Rescinds Offers (Jan ‘15)
Note the ADDED and UPDATED
I received a number of phone calls and email this morning from friends at Target HQ’s saying they had to be in a meeting in 15 minutes and asked if Target was laying off people today.
Yes, today was the day.
That this was coming was not a shock… there was “writing on the wall”:
The layoffs in November ‘13 were lower than some expected
After the November ‘13 layoff there were immediate rumors of a Q1 2014 layoff
Retail sales are down
Seeing that when some folks were leaving their jobs over the past months some were not being filled
Data breach (more on that below)
Canadian expansion not going as expected
The announcement yesterday that part time employees would no longer have health care coverage
I do think there is some pause from my perspective because of the numbers. I was not aware that this many people were going to be impacted.
I have seen this spun a little bit…
The number of HQ’s employees that are impacted is small. OK, that’s true. If one goes with the number of 14,000… 475 is around 3.4%.
Add in the layoff from the fall, those jobs not filled over recent months and the closing of 700 open jobs.
That’s a lot no matter how you try to spin it.
A few unknowns are:
Jobs: so far we are hearing IT and HR took the worst hit along with marketing and accounting and finance
UPDATED Location: most job losses are believed to be at the Minnesota HQ’s. How many will be in India? Target details India job cuts 40 are India with the rest in Minneapolis
UPDATED Severance: some say it based on experience, others a 20% of salary, others 1 week per year of service
The alarming thing to me is if it is true that these layoffs are not because of the data breach… what’s next?
The rumor mill has already started on a late Q1 2014 layoff.
At least the Target layoff is coming at a decent economic time. I am halfway through a blog post about the 2014 Minnesota jobs scene that I will post here in the next 12 hours or so.
ADDED Here is the blog post I mentioned Minnesota Jobs Scene: Q1 2014
Here are a few initial local stories on the layoff. As more info comes out in the coming days I will post those too:
Wednesday evening (1/22)
Target eliminates 475 jobs, most are at Minneapolis headquarters - Mpls StarTribune
Target lays off 475 employees - MSP Business Journal
Target cutting 475 jobs worldwide - St Paul Pioneer Press
Target Cuts 475 Jobs, Drops Insurance For Part-Timers - Twin Cities Business
And the Target layoff statement… I think this is all of it:
As an organization, Target continually assesses our operating model to ensure we are well-positioned to adapt to changing business needs. Today we informed our team that approximately 475 positions are being eliminated worldwide. We believe these decisions, while difficult, are the right actions as we continue to focus on transforming our business. We will continue to invest in key business areas to strengthen our ability to compete and thrive well into the future.
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