Minneapolis-based discount retailer Target said it will cut several thousands of jobs as part of its overall plan for a US$2 billion cost-saving strategy in the next two years.

Target said it the lay-offs will be part of an internal restructuring that aims to make the company more adaptable and competitive.

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The second-largest discount retailer in the US said it will eliminate jobs primarily at its headquarters, which currently has 13,500 employees, and in Bangalore, India.

The job cut will also affect workers in the United States and Canada, where Target has significant presence, although corporate headquarters staff will be heavily affected.

"We have to be more nimble, more agile. We have to create a more innovative culture," Target CEO Brian Cornell said.

Cornell did not specifically mention the actual number of jobs that will be affected by the restructuring plan but said it will be several thousands.

Cornell also said that Target plans to invest up to USD2.5 billion in the current fiscal year, and about US$ 1 billion will be allocated to technology and supply chain improvements.

The latest strategy of Target is seen by analysts as an attempt for the corporation to raise its profile in online shopping.

Cornell earlier said guests who shop both online and in stores generate three times more revenue than those that choose to shop exclusively in-store.

The discount retailer recorded stronger-than-expected sales during the holiday season as shoppers bought more clothing and other items.

The announcement last Tuesday about Targets plan immediately sent its shares rising in after-hours trading as investors welcomed the move.

Part of the overall plan of Target is also to stop expansion this year. The company said it will open only eight new Target Express stores nationwide in 2015.

Target has 1,934 locations in the U.S. and Canada.

TagsTarget, Target Lay-offs, Target Job Cuts