Part 5/12:
Target's leadership indicates that these layoffs are driven by internal complexity. Fiddlekey explained that organizational layers and overlapping responsibilities have slowed decision-making, impairing innovation. The move aims to foster a leaner structure, enabling faster decision-making and integration of new technologies, including AI.
However, critics argue that such layoffs disproportionately hurt workers while benefiting shareholders and top executives. There’s a pervasive sentiment that corporate efficiency efforts often come at the expense of employees’ livelihoods. The layoffs coincide with a period of financial pressure, as Target faces its worst sales streak in over a decade.