Target Corp. is cutting 475 workers across multiple departments at its Minneapolis headquarters and elsewhere in Minnesota, according to reports on Wednesday.
In addition, it has eliminated another 700 vacant positions during the last six months, according to the reports. A spokesperson for Target could not be reached on Wednesday.
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The cutbacks come following a holiday season that was impacted by the theft of payment-card data that the company said may have impacted as many as 110 million customers, and a weaker-than-expected start to the company’s rollout in Canada. The company said no positions in Canada would be cut, however.
In addition, Target said in a post on a corporate blog this week that it would no longer offer health insurance for part-time workers effective April 1, citing changes brought on by the Affordable Care Act. The company said the majority of its part-time workers did not participate in the plan. Target also said it would give a one-time cash award of $500 to those workers who did participate to assist them in transitioning to the insurance exchanges created by the ACA.
“We came up with a plan that tries to minimize any disruption and reduce confusion about how to work through the health insurance marketplaces,” Jodee Kozlak, EVP of HR, said in the blog post. “Therefore, Target has dedicated substantial resources to guide our team through every step of the process.”
In addition to the $500, part-time workers will also receive personalized guidance about health insurance options, she said in the post.
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