Target Australia confirms job cuts, HQ moves to Melbourne
Discount department store Target Australia is cutting staff due to underperformance and relocating its Geelong head office to a new headquarters west of Melbourne.
Target informed staff its Geelong headquarters would close within the next 12 months and move closer to Melbourne “to ensure Target is profitable and sustainable.”
Parent company Wesfarmers – via its managing director Richard Goyder - confirmed plans to slash staff on top of the move, but didn’t provide exact figures, reported the Sydney Morning Herald. Sources close to the retailer told the SMH that up to a quarter of the 900-strong Geelong head office could be let go with the location move.
However, new boss, Guy Russo, who was appointed chief of the troubled business in February, after Wesfarmers decided to merge Kmart and Target into one department stores division, spoke positively of the changes.
“To ensure Target is profitable and sustainable, some hard decisions have had to be made and we will be restructuring the team to support the future success of the business,” Russo said, in a statement.
Members of Target’s Geelong office will have the opportunity to apply for voluntary redundancies.
“Where appropriate we will explore avenues for potential redeployment opportunities within the Kmart, Target and broader Wesfarmers businesses.”
Meanwhile, the Victorian branch of the Australian Services Union has accused the group of turning its back on its employees.
“We fail to see how relocating to Melbourne at great expense will help turn around the company,” said branch secretary, Ingrid Stitt.
Target is yet to identify an appropriate site for the national office but is “looking at hopefully securing a site that is on the Geelong side of the Westgate Bridge or nearby, close to public transport and a retail hub,” said Russo.
“This will take some time and I don’t expect us to be moving within the next 12 months”.
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