goal It said Friday it was rolling back diversity, equity and inclusion programs — including some aimed at making its workforce and merchandise better reflect its customers.
In a memo sent to its employees, the Minneapolis-based retailer said it would end three-year DEI goals, stop reporting to outside groups focused on diversity like the Human Rights Campaign's Corporate Equality Index, and end a program focused on carrying more products. From black or minority owned businesses.
The memo was sent to employees on Friday and seen by CNBC. Written by Keira Fernandez, Chief Community Impact and Equity Officer at Target.
“Many years of data, insights, listening and learning have shaped this next chapter in our strategy,” she said in the memo. “As a retailer serving millions of consumers every day, we recognize the importance of keeping pace with the evolving outdoor landscape, now and in the future – all in service of driving Target’s growth and winning together.”
A Target spokesperson said there were no job cuts as part of Friday's DEI announcement.
With this move, the discount company joins a growing list of companies including… Supply of tractorsthe father of Facebook dead, Walmart and McDonald's That dropped pledges and goals related to DEI. Some of these companies have faced pressure from conservative activists or cited a Supreme Court ruling blocking affirmative action in colleges — which may not force companies to take any action on the issue.
The company's decision also follows President Donald Trump's executive orders, issued immediately after his inauguration, to end government DEI programs and place federal officials overseeing those initiatives on leave.
Not all companies have joined this trend. Thursday, Costco More than 98% of shareholders voted against a proposal to review the risks of its DEI programs, it said at its annual meeting. Costco's board of directors urged shareholders to vote against it.
Diversity commitments at many companies, including Target, go back years and were strengthened in the wake of the Black Lives Matter protests and the 2020 killing of George Floyd.
Four years ago, Target CEO Brian Cornell said the murder — which happened a short distance from Target's hometown headquarters — was personal. He said that motivated him to step up diversity and equality efforts at Target.
“This could have been one of my team members at Target,” he said at the time, recounting his thoughts as he watched the video showing Floyd taking his last breaths.
Target expanded its diversity goals at the time, saying it would increase the representation of Black employees across its workforce by 20% over the next year. The company has started a new program to help Black entrepreneurs develop, test and scale products to sell at mass retailers like Target. It promised to spend more than $2 billion with Black-owned businesses by 2025, from construction companies that build or remodel stores to advertising companies that market its brand.
The company and its foundation also provided $10 million to support social justice groups, including the National Urban League and the African American Leadership Forum.
On its website in recent years, Target has touted Cornell and the company's unwavering commitment to standing with Black families and combating racism. In other posts on its website, the company provided updates on its efforts to add more officials of color, reduce turnover of people of color, and increase promotions for women and minorities.
One post was titled “We Are Never Over,” and began with a quote from black poet and civil rights activist Maya Angelou.
Target dissolved Targets at a time when conservative politicians and activists have increasingly turned their focus to the company's efforts to be more inclusive.
Target has already felt pressure from conservative groups over some of its other long-standing initiatives. About two years ago, the retailer pulled items from its Pride Month collection after backlash and threats to employees over some of the merchandise it sells, such as “bendable” swimwear for transgender people.
Cornell said in 2023 that the backlash contributed to the company's weak quarterly sales. However, he said it will continue to celebrate heritage months with merchandise collections, such as Black History Month and Pride Month.
Target's employee base has become more diverse in recent years.
About 43% of Target's workforce was white, 31% Hispanic/Latino, 15% Black, and 5% Asian in the fiscal year that ended in early February 2024, according to the company's most recent diversity report.
The company's leadership team is less diverse than the overall workforce. 72% of leaders were white, followed by 11% Hispanic/Latino, 11% Asian, and 6% black.
