Target CEO resigns after customers' financial information theft

Information from 40 million customers stolen

“Today we are announcing that, after extensive discussions, the board and Gregg Steinhafel have decided that now is the right time for new leadership at Target“, a press release mentioned and it immediately sealed Steinhafel’s fate. The cause was a huge data leak last year, when hackers managed to steal bank accounts, addresses and phone numbers from (allegedly) 40 million customers.

The results were dire as customer trust sank, alongside the turnover. The company was even forced to adjust its profit and turnover forecasts.

Questions were raised about the sub-par computer security at Target, especially when the company had to admit that it already had indications – weeks prior to the actual hack – that there was something wrong with the security systems. That led to Beth Jacobs’s resignation in March, Target’s CIO. Her successor, Bob DeRodes, has just started his work.

Her resignation is now followed by Gregg Steinhafel’s after a 35-year Target career in which he held different roles with 6 years as CEO. Current CFO, John Mulligan, will temporarily take over his tasks, while Roxanne will – also temporarily – preside the board of directors.