Retail's Darkest Day - Amazon & Target Layoffs | Fast Five Shorts

For those of you who are somehow unaware of the news that we've talked, we've heard about the last several days, especially, Amazon and Target have executed sizable layoffs.

Yesterday, Chain Storage reported that Amazon eliminated approximately 14,000 of its roughly 350,000 person corporate workforce, the largest workforce reduction in Amazon company history, and in an effort to, quote, operate like the world's largest startup, end quote.

Meanwhile, Target has also said that it planned to cut 1800 roles across the company, or roughly 8% of its corporate workforce, citing, according to incoming CEO Michael Fidelke, quote, too many layers and overlapping work slowing decisions, making it harder to bring ideas to life, end quote.

Chris, what words of wisdom do you have in the wake of all of this layoff news?

Wow.

Well, it's hard to know where to start.

I mean, first of all, you know, my.

I want to express my sympathy for anyone that was impacted and pretty much anyone at these companies, too.

I think you have to think about it in that way too.

You know, and the one thing I always think about, because I went through this in 2015, the last time Target had a really big layoff.

And, you know, my boss at the time said, you know, for a lot of these people, for a lot of the workers, you know, at Target particularly.

And, and, you know, I think this is true of any company, particularly if you work in a, in a, you know, regional city like we do in Minneapolis.

You know, a lot of times it's like being asked to leave your church.

And so it can be very hard and very trying for a lot of people.

So my heart goes out to them.

When I step back from it and try to make sense of it all, I think brings up a lot of questions for me.

You know, is it, is it coincidental that these announcements happen on the same day?

Yeah, probably.

But could it be a sign that there's more to come throughout the industry, especially as you look at macroeconomics and the AI factors that are at play?

Yeah, potentially.

I think that's the real reality here.

And then the other point I'd bring up is, you know, it makes me look at, you know, how are these, how are these announcements communicated?

And, you know, it's two very different approaches.

You know, Amazon being very transparent and saying AI is a factor.

You know, not having worked there, I can't really comment on what that, you know, means for the culture there or, you know, how the employees are going to take it.

But, you know, I look at that in contrast to what, you know, Target CEO said and what you did and, and the big question I have there is just how can you come out and say that when you were the CFO and the CEO who was in charge of basically financing and greenlighting that organizational structure throughout the organization, and yet you and the former CEO are still around and still leading the company.

So that just doesn't ring true to me very well.

And I wonder if the culture honestly can ever recover from that when you get down to it.

But, you know, I don't know.

I hope, I hope he, I hope he takes feedback well and I hope he brings in some people then that can help him to rejuvenate the culture and can get the spirit of Target alive again.

But I think it's a, it's going to be a, it's gonna be a tough road ahead, for sure.

Yeah.

I mean, the first thing I would say is please reach out Target, Amazon people.

We are so fortunate one in being able to show you that there's, there's, there's life after the corporate jobs, which I think you're hearing a lot right now, probably.

But this could really be the launch pad to something entirely new.

And Amitak retail is 100% an example of that.

But also we've built this network and I'm so ready and here and willing to help however we can, you know, write a recommendation.

We've been fortunate to get to know so many of you.

So number one, that, that, that offer stands as long as you need it.

So please reach out.

The second thing that I'll say, Chris, I think in response to what you said is that I, you know, I, I think that the real issue is likely that, you know, companies are still structured and roles still exist based on pre AI days.

I mean, I don't know that we've seen a layoff like this in a long time.

And it's, it's kind of, to me reminiscent of when, you know, E commerce first came online.

However, in the E commerce days, that was like starting entirely new groups or, you know, kind of spreading people across.

Right.

So I think that what we're really seeing and unfortunately is a reality of AI being so much a core component of how businesses are operating more efficiently.

We're going to see layoffs because there's the ability for automation to replace some jobs that humans were doing.

My hope is that we do start to see opportunities come from this too.

But it will require that, you know, some of us pick up and learn new things or take on, take on new types of roles.

But the, the, I think the most important thing for all those listening who are affected by these layoffs is that you still very much have, have core skills that you've developed that will help you hopefully be agile and learn how to work with big major retailers like Target and Amazon, and that there still will be a place for you.

But I think that, to me is the biggest tell, is that, you know, we're.

We have to restructure our businesses to include AI as a part of the workforce and hopefully things unfold that open up new opportunities for people.

Yeah.

Well said.

Well said.

Yes.

And, and for everyone listening.

Yes.

Please reach out to Ann.

Please reach out to me.

We're here to help.

That's partly why we started omnitalk was to help people stay informed of how the industry was changing, and so we could be a help in that regard.

And my number one piece of advice, Ann, too, whenever I meet with folks in this situation, and you, and I've met with both of them a lot over the years, is like, make your next move where you're trying to move water, you're going with the flow of water.

Don't try to go to a company where you're moving water uphill anymore.

That's always a tricky thing.

So I think as people are looking at what's next, that's a key, key litmus test.

I know for you and for I.