Target Corp. (NYSE:TGT) has decided to discontinue its diversity, equity, and inclusion (DEI) program, becoming the latest in a series of U.S. companies to do so.
What Happened: Target, headquartered in Minneapolis, announced on Friday that it would be ending its DEI program, a move that has been criticized by some for potentially alienating its diverse customer base.
The company’s decision comes in the wake of similar moves by other major corporations, including Walmart Inc. (NYSE:WMT), Amazon.com Inc. (NASDAQ:AMZN), and Meta Platforms Inc. (NASDAQ:META) as the Trump administration takes aim at DEI initiatives.
Earlier this week, President Trump directed federal agencies to eliminate DEI programs and called on private companies to put an end to what he described as “illegal DEI discrimination and preferences.”
Target’s Diversity, Equity, and Inclusion (DEI) program, originally planned to extend through 2025, included the Racial Equity Action and Change (REACH) initiative. Under this initiative, the company pledged to invest over $2 billion in Black-owned businesses. The program also sought to introduce more than 500 Black-owned brands to its offerings and enhance the visibility of diverse-owned brands through funding provided by its in-house media company, Roundel.
Target's decision has faced backlash, with critics highlighting that its longstanding reputation for inclusivity has been instrumental in drawing a younger, more diverse customer base. “For Target, with an inclusive audience, this is their version of brand suicide,” Eric Schiffer of Reputation Management Consultants told Reuters.
Why It Matters: The decision by Target to end its DEI program is part of a larger trend among U.S. corporations. Earlier, McDonald’s also announced that it would be rolling back several diversity initiatives at its corporate level, citing a “shifting legal landscape” and growing pressure from conservative activists.
Meanwhile, Meta CEO Mark Zuckerberg expressed concerns about companies distancing themselves from “masculine energy” during a podcast with Joe Rogan. Zuckerberg’s comments came after Meta announced its decision to cut its DEI programs.
Meanwhile, Costco Wholesale Corp. (NASDAQ:COST) is standing its ground. In a nearly unanimous vote, shareholders reaffirmed their support for the company’s existing diversity, equity, and inclusion (DEI) initiatives, Forbes reported. This came despite a proxy proposal from the National Center for Public Policy Research, which called for an audit to assess Costco’s “litigation, reputational, and financial risks.”
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