US retail giant Target on Tuesday said that it has planned cutting ‘several thousand’ jobs over the next two years in an attempt to save USD 2 billion in costs as part of its restructuring program.

The Minneapolis-based company on Tuesday issued a statement, saying the job cuts will be made mainly in its headquarters in US and India.

The statement further said that the company will be eliminating the positions in order to create “centralized teams based on specialized expertise”.

Currently, Target employs 350,000 people worldwide. It has nearly 1,800 box stores. About 26,000 workers are employed at corporate locations in Minneapolis and India.

According to the analysts, the cost-cutting is a key part of Target’s restructuring plan to improve growth.

Calling the proposed transformation challenging, still necessary, Chief executive Brian Cornell said in a statement, “[I] 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.”

The decision for job cuts comes in the aftermath of the announcement by the retail company in January that it was pulling out of the Canadian market at a loss of USD 5.4 million.

The firm has also planned investment of up to USD 2.2 billion in the current fiscal year to match up with its online rivals in retail sector, while simultaneously revamping its merchandise to drive the sales growth.