Target Fires Hundreds From Little Village Warehouse Over Medical Benefits Scheme, Employees Say

Target has terminated hundreds of employees at its Little Village warehouse after uncovering a scheme that defrauded the company's medical loan program, with losses estimated at over $1 million. Employees exploited a glitch in the system, allowing them to pay back only $50 of loans exceeding $3,000 before erasing the remaining balance. The company confirmed the firings, citing violations of its code of ethics, while also announcing a hiring push to replace the fired workers. Reports indicate that between 400 and 700 employees were let go, creating a noticeable staff reduction at the facility. An employee who led the scheme reportedly charged fees for facilitating the fraudulent loans.

Discussions about the incident have circulated on social media, and it remains unclear if a criminal investigation is underway. The distribution center opened in 2021 and has faced local protests regarding its environmental impact. This situation highlights both internal company challenges and broader community concerns regarding industrial development.