Target’s new CEO, Michael Fiddelke, has begun his tenure with the removal of around 500 jobs from the company’s distribution centres, as the business looks to prioritise investment in staffing its stores.

An internal memo to employees, seen by the news outlets CNBC and Reuters, said the change will “put significantly more payroll” into Target’s stores. It added that the layoffs will comprise around 100 jobs at the store district level and around 400 at its supply chain sites.

Fiddelke, who began as CEO on February 1, entered the role with a statement of intent for the company’s future.

“While we have real work to do, we are clear on who we are, our unique place in retail and in the hearts of our guests,” he said.

“We are equally clear on the opportunity in front of us. Our guests want great design, real value and experiences that delight. That’s where Target has always been at its best, and it’s what grounds the important work in front of us now.”

Fiddelke’s statement included four main priorities, adding the need to move with “clarity and urgency”.

“To our team members: you are the heart of this company,” he said.

Target’s financial performance has been in steady decline, with its Q3 figures showing a 19.3 per cent decline in net sales and revenue decline of 1.5 per cent.