By JOHN VAN KLAVEREN
Target’s Geelong headquarters could lose a quarter of its staff and send others to Melbourne.
The chain’s new boss, Guy Russo, is considering the moves as part of a rescue strategy for the struggling retailer, according to Fairfax Media.
Target has more than 900 staff and has been through two rounds of job cuts in the past three years.
The retailer experimented with a St Kilda Road office for about 200 staff but closed it last year.
Sources said Target would maintain a smaller presence in Geelong but Mr Russo felt a Melbourne office was needed to attract better talent.
Mr Russo was behind a significant turnaround for K-Mart, taking it from a poor performer to the star of the Wesfarmers stable.
He had earlier indicated that cutting costs would be a significant part of any Target turnaround strategy.
Mr Russo, who took over earlier this year, said he would take some time to scope the Target business to understand why it was performing poorly despite solid revenues.
The potential job cuts would come on top of manufacturing job losses against the backdrop of the Geelong council sacking.
Target’s woes contrast dramatically with the success of another Geelong-based international retailer, Cotton On, which is expanding rapidly.
Geelong mayor Darryn Lyons said any news of possible job losses was completely unexpected.
“It’s a sad day for Geelong because Target has been a long-term stalwart of the retail scene,” he said.
“I would be hopeful that Cotton On could absorb some of Target’s staff because it’s going well and expanding its Geelong headquarters.”
