target announced Friday that it is scaling back a diversity, equity and inclusion program aimed at making its employees and products more reflective of its customers.
In a memo sent to employees, the Minneapolis-based retailer said it was ending its three-year DEI goal and increasing its commitment to external diversity-focused organizations like the Human Rights Campaign’s Corporate Equality Index. It said it would stop reporting and end the program with a focus on carrying more products. Black or minority-owned businesses.
The memo was sent to staff on Friday and seen by CNBC. This article was written by Kiera Fernandez, Director of Community Impact and Equity at Target.
“Years of data, insight, listening and learning have shaped the next chapter of our strategy,” he said in the memo. “And as a retailer serving millions of consumers every day, we understand the importance of keeping pace with the evolving external environment, now and in the future. It helps us grow and win together.”
A Target spokesperson said there will be no layoffs as part of Friday’s DEI announcement.
With this move, the discounter joins a growing list of companies including: tractor supplyFacebook parent meta, walmart and mcdonalds Companies that have withdrawn their DEI-related pledges and goals. Some of these companies faced pressure from conservative activists or cited the Supreme Court’s ruling blocking affirmative action in universities, which gave them no control over the issue. It may not force you to take action.
The company’s decision also follows President Donald Trump’s executive order shortly after taking office to end the government’s DEI programs and place federal employees who oversee these efforts on furlough.
Not all companies are joining this trend. On Thursday, costco announced at its annual meeting that more than 98% of its shareholders voted against a proposal to review the risks of its DEI program. Costco’s board of directors had urged shareholders to reject the proposal.
Diversity efforts 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.
Target CEO Brian Cornell said the murder, which occurred just a short distance from Target’s local headquarters four years ago, felt personal. He said this motivated Target to strengthen its commitment to diversity and equity.
“It could have been one of the members of my target team,” he said at the time while watching the video of Floyd taking his last breath.
Target expanded its diversity goals at the time, saying it would increase the percentage of Black employees in its workforce by 20% over the next year. The company has launched a new program to help Black entrepreneurs develop, test and scale products sold at mass retailers like Target. And they pledged to invest more than $2 billion in Black-owned businesses by 2025, from construction companies that build and renovate stores to advertising companies that promote their brands.
The company and its foundation also donated $10 million to support social justice organizations such as the National Urban League and the African American Leadership Forum.
Target has promoted Cornell University and its “unwavering commitment to standing with Black families and fighting racism” on its website in recent years. In other posts on its website, the company provided updates on its efforts to increase the number of executives of color, reduce turnover among people of color and increase promotions for women and minorities.
One post, titled “We’re Never Finished,” began with a quote from Black poet and civil rights activist Maya Angelou.
Target withdrew its goals as conservative politicians and activists increasingly focused on companies’ more inclusive efforts.
Target had already felt enthusiasm from conservative groups for other longstanding initiatives. About two years ago, the retailer removed items from its Pride Month collection after backlash and threats against employees over some of the products it sold, including “tuck-friendly” swimsuits for transgender people.
Cornell University said in 2023 that the rebound led to weaker quarterly sales for the company. But he said the company will continue to commemorate heritage months, such as Black History Month and Pride Month, with product collections.
Target’s employee base has become more diverse in recent years.
According to the company’s most recent diversity report, for the fiscal year ending in early February 2024, Target’s workforce was approximately 43% white, 31% Hispanic/Latino, 15% Black, and 5% Asian. It was a person.
The company’s management team has less diversity than its overall workforce. 72% of leaders were white, followed by 11% Hispanic/Latino, 11% Asian, and 6% black.
