Target is abandoning Geelong and cutting staff as the underperforming discount department store relocates to new headquarters west of Melbourne.

Less than one week after announcing the exit of outgoing Target managing director Stuart Machin over the use of rebates to boost the retailer's first-half earnings, Wesfarmers managing director Richard Goyder was on Thursday forced to confirm plans to slash staff and move Target's headquarters to Melbourne.

Mr Goyder would not comment on the exact size of the redundancies however he said a voluntary redundancy process would be put in place.

Sources close to the retailer suggest up to 25 per cent of Target's 900 staff could be cut and Mr Goyder confirmed seven senior staff had already left in the wake of the rebate scandal.