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Target DEI Rollback Results in Financial Fallout for Employees
March 28, 2025
Target is learning the hard way that not “going woke” results in going broke.
Quartz reports that the embattled retailer will be reducing its yearly bonuses for salaried employees, with the outlet noting that said employees will only be eligible for 87% of their bonuses, compared to 100% from last year.
Target has been experiencing a significant drop in its foot traffic following its decision to rollback Diversity, Equity, and Inclusion (DEI) efforts, which prompted a 40-day boycott of the retailer following a call to action from Black faith leaders across the country.
Compounding Target’s financial woes is the growing concern over the on-again, off-again tariffs imposed by President Donald Trump. Target’s March earnings report showed a cautious outlook, noting “ongoing consumer uncertainty” and fears about tariff consequences.
CEO Brian Cornell cautioned that fresh product imports from Mexico, notably bananas, avocados, and strawberries, will be directly affected by the tariffs, resulting in price increases. To better manage volatility, executives stated they will shift from quarterly to annual forecasting.
Black Leaders Called Upon Its Parishioners to Boycott Target
Now known as the “Lenten boycott,” Black faith leaders first called upon their parishioners to boycott Target back in February.
Religious leaders at Metropolitan African Methodist Episcopal Church, a historic Black church in Washington, DC, initiated the boycott. It began on Mar. 3, Ash Wednesday, the first day of Lent, which is the 40 days of prayer and penance leading up to Easter.
“We’ve got to tell corporate America that there’s a consequence for turning their back on diversity,” said Bishop Reginald T. Jackson. “So let us send the message that if corporate America can’t stand with us, we’re not going to stand with corporate America.”
Target’s anti-DEI efforts, however, have angered more than just Black churchgoers. In February, the City of Riviera Beach Police Pension Fund filed a class-action lawsuit against the company, alleging that it deceived investors about the risks involved with its ESG and DEI programs.
According to the plaintiffs, Target’s stock price increased between Aug. 26, 2022, and Nov. 19, 2024 (the Class Period) due to the company’s deceptive depiction of the risks. During the Class Period, investors paid more for Target shares, which then fell in the months that followed.
The store reportedly misled shareholders by unintentionally urging them to support management’s “misuse of investor funds to serve political and social goals.” The lawsuit accuses CEO Brian Cornell and other officials of failing to adequately explain the dangers of customer boycotts as a result of the company’s DEI policy.
One scenario given in the lawsuit is the Pride Month promotion in May 2023. The lawsuit contends that Target did not disclose the full scope of the response during the campaign. Employees became concerned about their safety when the company was forced to stop selling specific LGBTQ-themed merchandise in its stores due to widespread criticism at the time.
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