Target Lays Off 475, Cuts Health Insurance for Part-Timers

The latest in the series of cutbacks from big retailers: Target has announced it is laying off 475 people and will no longer offer health insurance to its part-time workers.

It is also not filling another 700 positions, according to reports in Reuters and elsewhere. Target did not return a request from JCK for comment.

The cuts to health insurance for part-timers were announced in a blog post signed by Jodee Kozlak, the company’s executive vice president of human resources, who said that part-timers now have the opportunity to buy insurance on the Affordable Care Act exchanges.

“The launch of health insurance marketplaces provides new options for health care coverage that we believe our part-time team members may prefer,” Kozlak said. “In fact, by offering them insurance, we could actually disqualify many of them from being eligible for newly available subsidies that could reduce their overall health insurance expense.” 

She noted that less than 10 percent of part-time employees participate in the plan. The benefits will end April 1. 

Macy’s and J.C. Penney have also announced after-holiday cutbacks. In addition, in a recent blog post, Sears CEO Eddie Lampert strongly hinted that his company will follow suit, saying “we may need fewer locations.”

 

 

 

JCK News Director