A few months back Target revealed that it had been the victim of a massive cyberattack which compromised personal and payment information of millions of its customers. After its revelation there were multiple reports of similar cyberattacks at other major retailers as well, Neiman Marcus confirmed that it had been hit as well. While the dust may have settled now the company seems to want to start fresh. It has been announced today that Target chairman and CEO Gregg Steinhafel has resigned. He has been with the company for 35 years.
The CEO’s departure comes after Target chief information officer Beth M. Jacob resigned back in March. She was the first high-level executive to leave her post following the massive data breach. Her replacement is someone who has expertise in protecting government data, a clear sign that Target is serious about not letting this happen again.
According to the company the decision to call for Steinhafel’s resignation came after “extensive discussions” and that the board now wants new leadership. So while it searches for a replacement the company will be led by John Mulligan, Target’s CFO.
There’s no doubt that Target has to regain the confidence of both shoppers and shareholders. A new leadership might help plug the 46 percent year-over-year drop in holiday season profits that the company recently recorded. In his resignation letter Steinhafel says that he feels “personally accountable” for security failure that led to this data breach.