Shipt, Target’s e-commerce arm, will cut more than 3% of its workforce, reports Alabama TV affiliate WBRC.
The company will also not offer any new positions, and those that were listed are now closed. Shipt did not go into details about the exact number that will be losing their jobs.
“As we evaluated the promising future of the company, we carefully reviewed the needs of our business and our team. Our business and industry have changed dramatically in the past few years, and to keep Shipt competitive and healthy, we ultimately made the difficult decision to eliminate select positions across the organization. In addition, we closed many of our open positions,” Shipt said in a statement.
“These decisions are never easy to make, and we have worked for months to do everything we could to avoid having to take this step. All impacted team members will have the opportunity to remain on payroll through November. Following that, they are being provided with comprehensive severance packages that include outplacement support and benefits continuation.”
According to AL.com, Shipt, which is headquartered in Birmingham, Ala., received around $19 million in cash incentives and tax breaks to create a bigger presence locally. However, in March the company asked to end its agreement with the Alabama Department of Commerce because it could no longer commit to the number of jobs it originally agreed to.