Target’s chief information officer resigns due to massive hacking

Nathan Andrada – Fourth Estate Cooperative Contributor

Minneapolis, MN, United States (4E) – Beth Jacob, Target’s Chief Information Officer, is stepping down as the retailer seeks to overhaul its information security and compliance divisions after it was hit by huge data breach.

Target Chief Executive Gregg Steinhafel said the company will conduct an external search for Ms. Jacob’s interim replacement, who will also help steer the business throughout the transition.

The Minessotta-based discount stores group revealed in December that financial accounts of 40 million customers had been compromised from Nov. 27 to Dec. 15. In January, it said that the personal information of an additional 70 million people had also been hacked during the similar breach.

Ms. Jacob becomes the first high-profile executive to resign since the data breach. She was named to the position in 2008 and oversaw the company’s computer systems.

Last week, Target said that it spent $61mn in the fourth quarter to address the breach. Net income dropped 46 percent to $520mn, or 81 cents per share, from $961mn, or a $1.47 per share, in the previous year. Sales dropped 5.3 percent and revenue at stores open at least a year slid 2.5 percent.

Target has since recorded a slight rebound in sales, but it warned last week that the cyber attack may still provide “material adverse effect” on 2014 earnings.

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