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Target Announces 475 Jobs Will Be Eliminated
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Target will be cutting 475 jobs from it’s global workforce, days after the discount retailer disclosed it would no longer offer health insurance to part-time employees. The decision to discontinue health benefits for part-time workers was months in the making and reflected a growing practice among large companies with big part-time workforce.

The announcement comes a month after Target reported a major breach of customer information. This breach happened during the busy Christmas holiday season. According to Target spokeswoman Molly Snyder, the cuts are unrelated to the breach. “We believe the decisions, while difficult, are the right actions as we continue to focus on transforming our business, we will continue to invest in key business areas to strengthen our ability to complete and thrive well into the future.” With Obamacare available and with the expansion of public healthcare including low-cost and often free Medicaid, companies will increasingly choose to not provide insurance to their part-time employees. In this case, the expense of health care costs for the employees moves from the corporate balance sheet, to the public balance sheet.


Target said next to nothing on Wednesday, only that 475 positions had been eliminated worldwide because the company “continually assesses the operating model to ensure they are well-positioned to adapt to changing businesses needs.” Target has about 361,000 employees worldwide and more than 1,700 in the United States. Based in Minniapolis, Target is the second largest discount retailer in the United States. Its ranking is 36 no the Fortune 500 list of companies. For employment opportunities at Target, click here.


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