Target lays off 150 employees in India as part of global corporate job cuts

US retailer Target is cutting 150 jobs at its India capability centre as part of a global layoff of 1,800 corporate roles

US retailer Target is laying off about 150 people from its global capability centre (GCC) in India as part of the company's wider layoffs announced last week, people familiar with the matter said.

 

The company is cutting about 1,800 corporate roles in its first major layoff in a decade as it tries to stem sluggish sales in a weak macroeconomic environment.

 

The number of people being asked to leave in India represents 8 percent of the total layoffs and just 3 percent of the company’s total workforce in the country. Target had about 5,500 people in India at the end of August.

 

 

It was not immediately clear the business divisions in the GCC where the layoffs are happening or the severance package the affected employees are being provided.

 

When contacted, a Target spokesperson said: "The changes made to Target’s global HQ team were an important step towards removing complexity and simplifying layers to accelerate how we work, and build a Target that is stronger and better positioned for growth. We cannot comment on a breakup by geography or business or levels. We cannot comment on the specifics of our severance package but are committed to supporting our team members throughout the process. We can confirm that our separation package is over and above legal requirements."

 

The layoffs come even as Amazon, the world’s largest online retailer, is also looking to reduce its headcount in India by 1,000-1,500. Those layoffs impacted multiple business units including AWS, Prime Video teams and retail business unit.

 

Target, which opened one of the first GCCs in India, more than two decades ago, will also close 800 open positions globally. 

 

Companies globally, and especially in the US, are trying to reduce staff cost by citing a sluggish macroeconomic environment, high tariffs, impact of automation, and shifting consumer habits. 

 

Retail GCCs were among the first to flourish in India and Bengaluru is the home to a host of such centres. Rarely anywhere in the world would one come across a place where companies like Walmart, Lowe’s, JCPenney, Hudson Bay, L Brands, Ikea, Falabella, Tesco, and Albertsons most of which have no stores in India, are all developing new technology to make the shopping experience more pleasant for its customers.

 

Such capability centres now have product ownership, drive core business functions and outcomes, and also build new capabilities to make their parent a future-ready enterprise. There are more than 70 retail and consumer packaged goods GCCs in India employing over 85,000 people, as per data from ANSR.