Target Corp. makes deep cuts 2 Comments UPDATED January 28, 2009, 8:43am

By Michelle Bruch

Target Corp. laid off 9 percent of its workforce at the Downtown headquarters Tuesday.

The cuts will eliminate about 600 employees and 400 open positions throughout the Twin Cities area.

Target has also suspended salary increases for senior management, tightened its credit card underwriting and credit granting, reduced planned new store openings, and cut travel expenses.

“We are clearly operating in an unprecedented economic environment that requires us to make some extremely difficult decisions to ensure Target remains competitive over the long-term,” said Gregg Steinhafel, President and CEO of Target Corp., in a statement.

Target has experienced weaker-than-expected sales in recent months, and holiday same-store sales in December were down 4.1 percent from last year.

Headquarters employees will continue to receive full pay and benefits through April 1, and then receive a “comprehensive separation package” based on their years of service with 12 months of health care benefits.

Target officials have also decided to close a Little Rock, Ark. distribution center this year that employs 500 people.

Mayor R.T. Rybak had this to say about the layoffs: "Members of the talented Target team make contributions to the city everyday, and now is the time for the rest of the community to give these workers the support they need in their career transitions. We will work with our local employers to do all we can to keep these talented workers in this community."

He said the city will help the laid-off workers take advantage of the Minnesota Dislocated Worker Program. It provides career counseling and a variety of free courses.