Target cuts work force

Target has announced a work force reduction of 9 percent at its Minneapolis headquarters, a move that will eliminate approximately 600 employees and 400 open positions. The company will also close its Little Rock, Ark., distribution center, which currently employs 500 people, later this year.

Other cost-cutting actions planned include suspending salary increases for senior management; suspending share repurchase activity; tightening credit card underwriting and credit granting; implementing initiatives to improve store productivity; reducing planned new store openings; and cutting outside contractor support, travel, entertainment and other headquarters operating 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, in a Jan. 27 announcement.

In recent months, Target has experienced weaker-than-expected sales, which is pressuring earnings performance, the statement said. Combined with the outlook for continued difficult economic conditions well into 2009, the company said it is taking a more conservative approach to business planning.

Target currently operates 1,682 stores in 48 states, 34 distribution centers and employs approximately 350,000 people worldwide.