Target workers face long weekend as layoffs loom on Tuesday

Target corporate employees face a long weekend full of anxiety, wondering whether on Tuesday they will find out they lost their jobs.

The Minneapolis-based retailer announced Thursday it would cut 800 open positions and lay off 1,000 workers.

After the announcement, social media channels blew up with people debating whether Target’s approach reflects transparency or adds unnecessary stress. Announcing layoffs days in advance may give workers time to brace for the news, but some argue that the uncertainty of waiting only deepens stress.

Connie Wanberg, a professor at the University of Minnesota’s Carlson School of Management, said the most effective and respectful sequence for layoffs is to tell affected employees first, then the rest of the organization and finally the public.

That order, she said, helps preserve trust and prevents employees from learning about layoffs through the media. Ideally, all three steps are as close together as possible. “Closer than they are in this instance,” Wanberg said in an email.

Theresa Glomb, another professor at Carlson, discussed the Target announcement with a leadership development class Friday. Both she and her students thought the timing of the announcement could have been better.

Now, “people are sitting and stewing for five days,” Glomb said.

“In real life, because of rumors and legal issues, and the complexity of it all, it is often hard to get the timing perfectly right,” Wanberg said. “For example, even if individuals were told first, if they leaked it to the media before all other individuals were told, that would be less than ideal as well.”

The long weekend, though, could heighten anxiety among employees, both Glomb and Wanberg said.

“I am sure many employees will be on pins and needles all weekend,” Wanberg said. “In addition, some may start a job search even if they are not targeted for layoff. It may also make a number of employees very angry.”

Glomb put it another way: “Target, through this communication, just made everybody an active job seeker.”

Target’s layoffs come after 11 consecutive quarters of flat or declining sales and mounting competition from Walmart, Amazon and Costco. The retailer has also faced customer backlash for scaling back its corporate diversity, equity and inclusion efforts and its 2023 Pride month merchandise.

Still, Wanberg isn’t the only expert who brought up employee culture.

“As would be expected, the job cuts will dampen morale at a company where the mood is already somber,” said Neil Saunders, managing director at GlobalData Retail, in an analyst note.

Employees, who were asked to work from home next week, will find out details of separation packages if their jobs are cut. Affected employees will receive pay and benefits through Jan. 3.

Usually, employers work something out with private outplacement firms or the Minnesota Department of Employment and Economic Development (DEED).

A DEED spokesperson said the agency has not been notified of any job cuts at Target, but will certainly work with any displaced workers or the company to help.