The repurcussions from Target’s decision to exit Canada continue.
Target on Wednesday said it will eliminate about 550 jobs at its Minneapolis headquarters. An additional 170 positions in India will be eliminated over time.
The company said the job cuts are all connected to the decision earlier this month to end its operations in Canada.
Of the 550 jobs in Minneapolis, about 350 positions are being eliminated today, the company said. The majority of the remaining employees will be needed through the closure of the Target Canada stores, and their positions will be eliminated after the liquidation period. All affected employees will remain on the payroll for at least 60 days, and they will receive comprehensive severance packages based on their years of service. Workers will be given career outplacement support, and Target will pay the employer portion of their benefits coverage for the next six months.
“This is a difficult day for the Target team, but we continue to believe that the steps we are taking are the right ones for the company,” a spokeswoman said.
Target has reportedly come to a deal with the landlords of its Canadian stores. The court-appointed monitor in Target’s current insolvency proceedings will take a larger role in directing the sale of the retailer’s Canadian leases. The landlords had been threatening to push Target into bankruptcy as a way to gain control over the sale of leases, arguing that the process would take longer with Target at the helm.
“Target Canada is pleased that an agreement has been reached related to the real estate sale process,” the spokeswoman said. “Going forward, the monitor will continue to provide appropriate updates to the court as the process continues.”
Target operates 133 stores in Canada through its indirect wholly-owned subsidiary, Target Canada Co.