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Discount department chain Target Australia has confirmed that it is in the midst of a restructure to bring the struggling business back to strength.
The company has addressed recent reports which suggest that the company is primed to announce hundreds of job cuts and a possible operational restructure following its profit warning last month.
Responding to ragtrader.com.au's query on whether the company is undergoing a restructure which will involve mass redundancies and job culling, Target corporate media manager Tim Muir confirmed the Target business is currently in transition.
“We’re reviewing all aspects of the business, and have taken a number of actions to turn around Target’s performance. There have already been a number of team changes as part of this review, and more changes are likely,” he said.
“However, we will work these through with the Target team, and they will be kept informed of any changes that may arise.”
Target has remained tight-lipped, however, regarding other reports which claimed redundancies have already begun at the company's marketing department last week.
The news follows a tumultuous period for the retailer, which just last month downgraded its full year guidance, citing it had been hard hit by the tough trading environment.
According to the company, Target's earnings before interest and tax (EBIT) for the 2013 financial year are now expected to be between $140 million and $160 million.
As previously reported on ragtader.com.au, the Australian retail chain has also been battling legal action by international make-up company Estee Lauder, following claims that it had been selling fake MAC Cosmetics at its stores.
While the case with Estee Lauder is still on going, Target has since been tied up in its own investigations to discover the original source of the counterfeit cosmetics.