Target, one of America’s largest retailers, has announced it will roll back some of its diversity, equity, and inclusion (DEI) programs. This move comes amid a growing trend among big corporations—such as Walmart, Meta, and McDonald’s—reconsidering or reducing their DEI commitments. For Target, this means stepping back from several diversity-related initiatives that were introduced in response to public pressure and social movements, like the Black Lives Matter protests following George Floyd’s tragic death in 2020.
What Is Target Changing About Its DEI Programs?
In a recent memo to employees, Target shared that it would end its three-year DEI goals and stop reporting to external groups like the Human Rights Campaign’s Corporate Equality Index. Additionally, the company will halt its program that focused on carrying more products from Black- or minority-owned businesses.
The company’s Chief Community Impact and Equity Officer, Kiera Fernandez, explained that these changes come after years of listening and learning, signaling a shift in strategy to better align with the evolving external landscape and help Target grow.
But Target emphasized that no employees would be laid off as a result of these changes. While some of its DEI initiatives are scaling back, the company will still maintain diversity efforts in other ways.
Why Is Target Scaling Back Its DEI Initiatives?
This move follows a broader trend in corporate America, where companies are adjusting their diversity commitments. The reasons vary, but some of the most common explanations include:
- Conservative Backlash: Many companies, including Target, have faced pressure from conservative groups and activists who argue that DEI programs unfairly prioritize race or gender. These groups have been vocal, especially after the Supreme Court’s ruling blocking affirmative action in college admissions.
- Economic Pressures: As inflation and economic uncertainty continue to affect companies, some may see DEI programs as costly or unnecessary in the current business climate.
Target’s move also echoes shifts seen under the Trump administration, where executive orders aimed to limit DEI efforts in government agencies, sparking wider debates about the role of such programs in the private sector.
A Response to the George Floyd Tragedy
Target’s push for stronger diversity programs began after the murder of George Floyd in 2020, which occurred in Target’s hometown of Minneapolis. This event had a profound impact on the company, motivating Target to expand its efforts around racial equality. In response, Target committed to increasing representation of Black employees and planned to spend more than $2 billion with Black-owned businesses by 2025.
CEO Brian Cornell emphasized how personal the tragedy felt, stating that “that could have been one of my Target team members.” At the time, Target also pledged to help Black entrepreneurs grow their businesses and to spend millions supporting social justice organizations.
While Target’s commitments were seen as part of a broader corporate reckoning with systemic racism, the retailer now appears to be recalibrating its approach, amid shifting political and social winds.
Which Programs Are Affected by the Change?
Here’s a breakdown of the major DEI-related changes at Target:
- Ending the Three-Year DEI Goals: Target had set ambitious goals for increasing diversity within its workforce, including increasing Black representation. These goals, which were meant to be met by 2025, will no longer be pursued in the same way.
- Stopping Reports to External Groups: Target will no longer report to organizations like the Human Rights Campaign’s Corporate Equality Index, a well-known measure of corporate inclusivity.
- Ending the Black-Owned Business Program: One of the most high-profile DEI initiatives, which aimed to help bring more Black- and minority-owned products to Target shelves, will also be phased out.
Target’s Response to Conservative Backlash
While some of these changes come as a direct response to shifting political and cultural dynamics, they also follow the retail giant’s past struggles with conservative backlash. For example, in 2022, Target faced criticism from conservative groups over certain Pride Month merchandise, including “tuck-friendly” swimsuits designed for transgender people.
The backlash led to threats against employees, forcing Target to pull certain items from its stores, which in turn impacted the company’s sales. CEO Brian Cornell admitted that the controversy around these products contributed to weaker quarterly sales in 2023, even though the company continued to support heritage months like Pride Month and Black History Month with themed merchandise.
What Does This Mean for Target’s Workforce and Leadership?
As of the latest reports, Target’s workforce has become increasingly diverse. In the fiscal year ending in February 2024, the company’s employees were 43% white, 31% Hispanic/Latino, 15% Black, and 5% Asian. However, the leadership team does not reflect this diversity, with 72% of executives identifying as white.
While the company is reducing some of its external diversity commitments, it is not walking away from its responsibility to maintain an inclusive work environment. Target continues to make strides to ensure diverse representation at all levels of the company. The question remains whether these shifts will change the company’s overall commitment to internal diversity.
The Bigger Picture: Corporate America’s DEI Retraction
Target’s decision to scale back its DEI efforts mirrors a broader corporate retreat from diversity commitments that began after the George Floyd protests. While companies like Costco have doubled down on their DEI efforts, more and more retailers and tech companies, including Meta, Walmart, and McDonald’s, have started to rethink or withdraw from diversity programs.
This trend is partly driven by political pressure, but also by a desire to avoid alienating customers. The current political climate has made DEI a polarizing issue, with some viewing it as essential for addressing inequality, while others see it as a distraction from business priorities.
Looking Ahead: What’s Next for Target?
As Target recalibrates its approach to DEI, the company is likely to face continued scrutiny from both sides of the debate. For now, the retailer is focusing on adjusting its strategy to better reflect changes in its external environment. Whether this will lead to long-term consequences for Target’s image and customer loyalty remains to be seen.
One thing is clear: Target’s decision to scale back DEI programs signals a larger shift in corporate America, where social justice commitments are being questioned and reevaluated. While it’s still too early to tell what this means for the future of diversity in business, Target’s actions are part of an ongoing conversation about how companies balance social responsibility with profitability.
Conclusion: A Changing Landscape for Corporate Diversity
Target’s decision to scale back its DEI programs marks a turning point in the broader conversation about diversity and inclusion in corporate America. As the company shifts its focus, it will be interesting to see how other major retailers and corporations respond in the years to come. Will this trend continue, or will companies find new ways to balance social responsibility with business goals?
Only time will tell, but one thing is certain: the landscape for corporate DEI efforts is rapidly evolving, and businesses like Target are at the forefront of this change.

I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.