Target to cut thousands of jobs and slash costs by $2bn

US retail giant Target proposes to slash several thousand jobs, mainly from headquarters located in the US and India, as it aims to cut $2bn (£1.3bn, €1.8bn) in costs over two years.

Target said it will slash jobs primarily from corporate locations in the Minneapolis area and in India, that collectively employ about 26,000 people, and not from its roughly 1,800 stores across the US.

Target, in a statement, also said that it expects to pump between $2bn and $2.2bn in capital expenditures this year, "including a $1bn investment in technology and supply chain".

The company said it had the capacity to repurchase up to $2bn worth of its own shares this fiscal year, ending January 2016, and that it plans to buy back shares worth $3bn annually from the following year and beyond.

Target added that it was revamping its merchandise, partly to attract millennials and Hispanics, seen as important to boosting sales growth.

Chief executive officer Brian Cornell commented: "While we're in the early days and there's no doubt that transformation can be challenging, we're taking the steps necessary to unleash the potential of this incredible brand.

"I'm encouraged by our early momentum, and am confident that by implementing our strategy, simplifying how we work, and practicing financial discipline, we will ignite Target's innovative spirit and deliver sustained growth."

Target's stock has gained some 2.75% so far this year in New York trade.

In January, Target announced its decision to pull out of Canada.

Cornell, a former Wal-Mart Stores and PepsiCo executive, assumed office in August 2014 after former CEO Gregg Steinhafel stepped down in the wake of a massive theft of customer data in late 2013.