Target Layoffs In U.S. Another Effect Of Retailer's Canadian Misadventure

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Some 550 Target employees at the company’s headquarters in Minneapolis will be handed pink slips, at least partly a consequence of the retailer’s foray into Canada.

Approximately 350 jobs at the company’s corporate offices will disappear immediately, while another 200 “are needed through the closure of the Target Canada stores” and will remain until after the liquidation is over, according to a statement from the company quoted by the St. Paul Pioneer-Press.

It’s a sign that the failed expansion into Canada will have repercussions for the retailer well beyond the soon-to-be-shuttered Canadian stores.

But unlike their Canadian compatriots, some laid-off Target workers in Minnesota will be given severance pay.

According to KARE News in Minneapolis, “certain employees” will receive severance packages proportional to their length of service. They will also see their benefits continue for six months past termination.

It's unclear how many of the employees will receive severance, and how much they will get.

Laid-off rank-and-file employees at Canadian stores will not be receiving any severance, a sore point for many of them who point out that the top two dozen or so managers will receive an average of $30,000 each.

Target set up a $70-million compensation fund to pay workers when the Canadian division declared bankruptcy in January. The fund came in for criticism when it was pointed out that it amounts to roughly the same amount of money that Target gave to outgoing CEO Gregg Steinhafel when he departed the company in 2014.

Others accused the fund of being unfair, as some workers will be required to work to receive money from the fund, while those let go earlier will continue to receive the money without working.

Target announced in January it would be withdrawing from Canada entirely, shutting 133 stores and writing off US$5 billion on the two-year stint north of the border.

The company launched its liquidation sales last week, to criticisms that the prices weren’t low enough -- the same complaint many Canadians shoppers had about the chain throughout its time in Canada.

Also on HuffPost:

Stores That May Disappear From Canada

Target Canada(01 of08)

This one, as you are probably aware, is already out the door.Target announced on Jan. 15 it is leaving the Canadian market, having lost some $2.1 billion on its whirlwind foray north of the border. (credit:Canadian Press)

Jacob(02 of08)

A few months ago it looked like Jacob was already gone, with the Quebec-based fashion boutique filing for bankruptcy and announcing plans to close all 92 stores. But a Quebec court has given the retailer until later this month to come up with a plan to save some of its stores. (credit:Canadian Press)

Sears Canada(03 of08)

The Canadian division of Sears has been bleeding money and has tried to stanch it by selling off leases to some of its highest-profile locations, not to mention layoffs by the thousands. But those moves didn’t stop the retailer from doubling its losses in the most recent quarter. The chain’s Chicago-based parent company is mulling selling the Canadian division. But in this era of big box department stores struggling against online retailers, it’s hard to see who would buy Sears Canada. (credit:Canadian Press)

Reitmans(04 of08)

Montreal-based Reitmans said a few years back it wasn’t worried about Target’s arrival in Canada -- it had survived Walmart and The Gap, after all. Two years later, the retailer that owns numerous fashion chains, including Smart Set, Addition Elle, RW & Co. and Penningtons, is shrinking. The company last year opened 25 new stores, but closed 58. that still leaves it with 878 stores. Profits for the 2013 fiscal year shrank by nearly 60 per cent. (credit:Canadian Press)

Chapters Indigo(05 of08)

If you've stepped into an Indigo recently, you can be forgiven for wondering whether the retailer still sells books. With e-books and online book retailers putting big-box bookstores under pressure, Indigo is busily diversifying its product offerings to include "lifestyle items" such as candles and gifts, but will it work? Indigo is growing its online sales by the double digits, but they still only account for some 10 per cent of total sales. The U.S. big box bookstore Borders closed a few years back. The idea that Canada's last remaining big box book chain could follow seems less unthinkable with every passing day. (credit:vasta via Flickr)

Aeropostale Canada(06 of08)

Aeropostale was a growing brand in Canada until about 2012, opening an average of nine new stores per year. But last year it began shrinking, and now has 51 stores in Canada, down from 58. The chain appears to be suffering from a potentially fatal problem: Teens don't think it's cool anymore. (credit:JeepersMedia via Flickr)

Best Buy Canada(07 of08)

Layoffs at Best Buy Canada and its sister chain Future Shop have numbered in the thousands over the past few years. The CEO of the Minnesota-based company described Canada this spring as a "very, very soft" market for electronics. Best Buy doesn't break out numbers for Canada, but its international division (Canada, Mexico, China) saw sales plunge 10.5 per cent in the first quarter, with same-store sales down 5.8 per cent. The chain is one of the most prominent victims of "showrooming" -- customers coming in to check out products, then buying them at lower prices from an online competitor. (credit:JeepersMedia via Flickr)

Le Chateau(08 of08)

Le Chateau is shrinking. The chain opened one store last year, and closed seven. It now has 228 retail locations, down from 243 in 2011. The company's shares were trading at $15 as recently as 2010; they are now hovering around $1.50. (credit:bargainmoose via Flickr)

business Gregg Steinhafel target target job cuts target job cuts minneapolis

Target Layoffs In U.S. Another Effect Of Retailer's Canadian Misadventure

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