Target announced on Friday that it will roll back its diversity, equity, and inclusion (DEI) initiatives, which were initially established to align the company’s workforce and product offerings more closely with its customer base. The decision will end the retailer’s three-year DEI objectives, cease reporting to diversity-oriented organizations, and discontinue a program that promoted products from Black- or minority-owned businesses.
In a memo shared with employees, Kiera Fernandez, Target’s chief community impact and equity officer, stated that the company is adapting its strategy based on years of data and insights. She emphasized the importance of aligning with the changing external landscape to drive Target’s growth. Despite the changes, the spokesperson confirmed that there would be no job cuts resulting from this decision.
This move places Target among several corporations that have recently withdrawn DEI-related commitments, including Walmart and McDonald’s, often in response to pressure from conservative activists or legal changes, such as the Supreme Court’s ruling against affirmative action in college admissions.
Target’s retreat from its earlier DEI commitments comes in the wake of heightened conservative scrutiny. The company’s increased diversity efforts were catalyzed by the social unrest following George Floyd’s murder in 2020—a significant incident that resonated deeply with Target’s leadership, as it occurred near their headquarters.
While many businesses are re-evaluating their DEI agendas, some, like Costco, are maintaining their commitments. At Costco’s recent annual meeting, a strong majority of shareholders voted against reviewing DEI program risks.
Historically, Target had made substantial investments in diversity initiatives, including a promise to spend over $2 billion with Black-owned businesses by 2025 and contributions to social justice organizations. However, recent backlash against certain merchandise and the evolution of the political landscape may have influenced its decision.
In terms of workforce demographics, as of February 2024, Target reported that approximately 43% of its employees identified as white, 31% as Hispanic/Latino, 15% as Black, and 5% as Asian. However, this diversity does not extend evenly to the company’s leadership team, which remains predominantly white.
This move may reflect a broader trend among corporations navigating a complex socio-political environment. While some may see it as a step backward, it presents an opportunity for Target and others to reassess their approach in a way that genuinely reflects their values and the needs of their workforce and customers. Balancing changing expectations while remaining committed to fostering an inclusive environment may still be possible, and it will be crucial for Target to engage meaningfully with its diverse communities moving forward.