Target will move its Geelong headquarters, the retail giant has confirmed, with between 130 to 180 jobs to be cut and hundreds more expected to be moved from the Victorian city.

The operations centre in Geelong employs 900 people.

Many of the remaining jobs will be moved to the new headquarters, most likely in Melbourne's west.

Others may be offered positions in other Wesfarmers businesses in Geelong, like Kmart, with each case to be assessed individually.

A redundancy program will begin in the next three weeks.

The CEO of Wesfarmer's department stores division, Guy Russo, said the move was necessary.

"To ensure Target is profitable and sustainable, some hard decisions have had to be made," Mr Russo said in a statement.

"The Geelong site for the national office is no longer a viable option if we're to remain competitive and build a profitable business for shareholders, customers and the entire 20,000 team members across our store network."

Mr Russo said the move would be "more appropriate" for staff and stakeholders, including suppliers and business partners.

"We will continue to stay connected and play an important role in the Geelong community for many years to come," he said.

In 2013, the company cut 260 jobs at Geelong following a restructure.

It is yet another blow to the region following the recent closure of Alcoa and Ford ceasing its manufacturing there.

Target 'part of the fabric of Geelong'

The Australian Services Union said it was a devastating announcement and has demanded a meeting with management.

"There have been some rumours over the past few months but I don't think that people were really expecting that they would close the whole Geelong site," union branch secretary Ingrid Stitt said.

"It's obviously a devastating blow to all of the workforce but also to the broader Geelong community."

While the unemployment rate in Geelong is similar to the national average of about 6 per cent, it is closer to 20 per cent in the nearby suburbs of Corio and Norlane.

Geelong mayor Darryn Lyons said he was "deeply disappointed and disheartened" by the news.

"Target has been part of the fabric and tradition of Geelong since 1925, when founder George Lindsay opened his first store here," he said in a statement.

"I understand this is a business decision, but that does not make it any easier for our region."