Goal On Friday, the company announced it was scaling back diversity, equity and inclusion programs — including some aimed at making its workforce and merchandise more reflective of its customers.
In a memo to employees, the Minneapolis-based retailer said it would end its three-year DEI goals, stop reporting to outside diversity-focused groups like the Human Rights Campaign's Corporate Equality Index and end a program focused on it to sell more products from Black or minority-owned companies.
The memo was sent to employees on Friday and viewed by CNBC. It was written by Kiera Fernandez, Chief Community Impact and Equity Officer at Target.
“Many years of data, insights, listening and learning have shaped this next chapter of our strategy,” she said in the memo. “And as a retailer serving millions of consumers every day, we know how important it is to keep pace with the evolving external landscape now and in the future – all in service of Target’s growth and shared success.”
A Target spokesperson said there are no job cuts as part of Friday's DEI announcement.
With the move, the discount retailer joins a growing list of companies including Tractor supplyFacebook's mother Meta, Walmart And McDonald's who have abandoned DEI-related commitments and goals. Some of these companies have faced pressure from conservative activists or cited the Supreme Court ruling blocking affirmative action on college campuses — which may not force companies to take action on the issue.
The company's decision also follows President Donald Trump's orders, issued almost immediately after his inauguration, to end the government's DEI programs and furlough federal officials overseeing those initiatives.
Not all companies have joined the trend. On Thursday, Costco said at its annual meeting that more than 98% of shareholders voted against a proposal to review the risks of its DEI programs. Costco's board had asked shareholders to vote against it.
The diversity commitment of many companies, including Target, has been in place for years and was reinforced in the wake of the Black Lives Matter protests and the murder of George Floyd in 2020.
Four years ago, Target CEO Brian Cornell said the murder — which occurred just not far from Target's hometown headquarters — was a personal matter. He said it motivated him to strengthen Target's diversity and equity efforts.
“That could have been one of my Target team members,” he said at the time, describing his thoughts as he watched the video of Floyd taking his final breaths.
At the time, Target expanded its diversity goals and announced it would increase the proportion of Black employees in its workforce by 20% next year. The company launched a new program to help Black entrepreneurs develop, test and scale products to sell at mass retailers like Target. And it pledged to spend more than $2 billion by 2025 on Black-owned businesses, from construction firms that build or remodel stores to advertising firms that market their brands.
The company and its foundation also donated $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 praised Cornell's and the company's “unwavering commitment to stand with Black families and fight against racism.” In other posts on its website, the company shared its efforts to hire more officers of color, reduce turnover of people of color and increase promotions for women and minorities.
One post was titled “We Are Never Done” and began with a quote from Black poet and civil rights activist Maya Angelou.
Target removed the targets at a time when conservative politicians and activists were increasingly focusing on companies' efforts to be more inclusive.
Target had already felt pressure from conservative groups over some of its other longstanding initiatives. About two years ago, the retailer pulled items from its Pride Month collection after backlash and threats toward employees over some merchandise it sold, such as “tuck-friendly” transsexual swimsuits.
Cornell said in 2023 that the backlash contributed to the company's weaker quarterly sales. However, he said the heritage months would continue to be celebrated with merchandise collections such as Black History Month and Pride Month.
Target's employee base had become more diverse in recent years.
As of the fiscal year that ended in early February 2024, about 43% of Target's workforce was white, 31% was Hispanic/Latino, 15% was Black and 5% was Asian, according to the company's most recent diversity report.
The company's leadership team is less diverse than its entire workforce. Seventy-two percent of leadership was white, followed by 11% Hispanic/Latino, 11% Asian, and 6% Black.
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