900 Geelong Target jobs in limbo as new boss Guy Russo searches for Melbourne base

IT’S been a tough week for Target staff. Days after the retailer was engulfed in scandal, 900 staff are at risk of losing their jobs.

Target Head office

TARGET will be moving its head office to Melbourne, ending a 90-year association with Geelong.

The Geelong Advertiser can reveal that new boss Guy Russo spoke with staff on Thursday about the department store’s plans, which include leaving Geelong for a yet-to-be-determined location in Melbourne.

There is no time frame on the move, however staff have confirmed that redundancies are on the table.

Nine-hundred staff are employed at the North Geelong headquarters, which has been the base for Target since its creation in 1926.

Target has previously refused to counter claims of looming job cuts, amid a scandal that exposed the company’s half-year earnings were $21 million less than what was first recorded.

More to come.

PREVIOUSLY, 900 Geelong jobs are in limbo amid reports Target’s new boss is searching for a Melbourne base for the nat­ional retailer.

The company yesterday continued to maintain its ­silence over the future of its North Geelong headquarters, despite numerous attempts by the Geelong Advertiser over the past month to get comment.

Guy Russo, who was appointed to lead the company in February, is understood to have placed dealing with Target’s headquarters on his list of priorities for his first 100 days in charge.

As he undertakes a national fact-finding mission, there are local fears about impending job losses in Geelong and the downsizing of the Thompson Rd head office.

Target, which has been based in Geelong since it was born from a drapery store 90 years ago, has continually refused to comment on its fut­ure plans. A spokeswoman said it was not in a position to comment at this stage.

The Wesfarmers-owned company has recently seen four executives resign or sacked over an investigation that found Target’s half-year earnings were artificially boosted by $21 million.

On Monday it was revealed the company had arranged cheaper prices with overseas suppliers in the first half of fiscal 2016, on the promise it would pay more in the second half. Among those to go was Target’s managing director Stuart Machin, who had been usurped by the appointment of Mr Russo.

Target has about 900 employees at its North Geelong base, having been dramatically reduced when Mr Machin cut 242 positions in 2013, just two months into his role.

There has been mounting speculation the headquarters could face similar job woes with the recent restructure, with any potential cuts set to hurt the Geelong economy.

Last month a spokesman refused to comment on the company’s internal processes when former Kmart chief executive Mr Russo was announced in the same role at Target, saying it was “early days”.

A month earlier, a spokesman denied looming job cut claims and said she had “no idea” where the rumours had come from.

The Australian Services Union was contacted but did not respond in time for comment.

Originally published as 900 Geelong Target jobs in limbo as new boss Guy Russo searches for Melbourne base