US retailer Target to cut thousands of jobs

Target store in Virginia Image copyright AFP
Image caption Target's job cuts will be mainly at its Minneapolis headquarters and in India

US retail giant Target plans to cut several thousand jobs as it tries to slash $2bn (£1.3bn) in costs over the next two years.

The job losses will happen mainly in its US headquarters and in India, the company said on Tuesday.

The cost-cutting is a key part of its restructuring plan to boost growth.

News of the cuts comes after the retailer announced in January that it was pulling out of the Canadian market with a $5.4bn loss.

Chief executive Brian Cornell said there was no doubt that the "transformation can be challenging" but the steps were necessary for the firm.

"[I] am confident that by implementing our strategy, simplifying how we work and practising financial discipline, we will ignite Target's innovative spirit and deliver sustained growth," he said in a statement.

Mr Cornell took over as the head of the retailer in August in the wake of a massive breach of customer data in 2013 that affected 70 million people and cost the company $17m.

Target employs about 26,000 workers at corporate locations in Minneapolis and in India, where the job losses are primarily expected to be.

The company also plans to invest up to $2.2bn in the current fiscal year to catch up with online retail rivals and revamp its merchandise to drive sales growth.

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