Bad news confirmed

An update from yesterday's post: it's been confirmed that Target will suffer layoffs. The retailer has announced that it will slash 1,000 jobs at its downtown Minneapolis headquarters, laying off 600 workers and eliminating 400 open positions. The cuts represent about 9 percent of its downtown work force. Target also will close its Little Rock, Ark., distribution center later this year, which currently employs about 500 workers. They will be offered positions at other Target distribution centers or will receive severance packages similar to those received by the headquarters employees.

Target already had suspended salary increases for senior management, suspended share repurchase activity, tightened credit card underwriting and credit granting, reduced its store expansion plans and cut expenses such as outside contractor support, travel and entertainment. You can read the full article from the Minneapolis/St. Paul Business Journal here.