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Barely half of Target’s workforce has faith in the future of their employer, an employee survey has revealed, as the fallout from its U-turn on its diversity, equity, and inclusion (DEI) policies continues to mount.
The damning results from a recent employee survey of 260,000 staffers follow slumping footfall and sales performance at the retailer.
“Our team is not happy with the current performance,” a Target spokesperson admitted, speaking to the Wall Street Journal.
Why have Target’s employees lost their faith?
A companywide survey of 260,000 Target employees in June found that roughly 40% said they didn’t have confidence in the retailer’s future, the Journal reported on Sunday.
In some locations, such as Target’s HQ in Minneapolis, the scores were reportedly even lower.
Target has struggled with shoppers turning away from its stores for a variety of reasons over recent years, including competition from other low-cost retailers, tariffs, and backlash for its handling of DEI policies, including 2023’s Pride collection controversy.
Earlier in 2025, the retailer reported a 3.8% drop in comparable sales for its first quarter, alongside steady declines in foot traffic.
Many of Target’s problems started in 2023, when it found itself at the heart of a fierce row over LGBTQ-themed merchandise placed in-store during Pride Month.
Consumer boycotts and in-store confrontations pushed Target to remove some products from shelves after it “experienced threats impacting our team members' sense of safety and well-being while at work.”
The decision to remove the products sparked further backlash from pro-LBGTQ groups, with the fallout from both sides leading to a drop in sales and a headache that Target is yet to fully recover from.
Target grapples with DEI headache
Earlier in 2025, Target’s predicament was compounded by a decision to renege on DEI programmes, including participation in high-profile benchmarks such as the Human Rights Campaign’s Corporate Equality Index.
Target’s “Belonging at the Bullseye” initiative, which had previously guided hiring and supplier diversity efforts, was also axed.
In a company earnings call earlier this year, CEO Brian Cornell indicated the DEI policy shift was one of several headwinds – including macroeconomic pressures and consumer spending patterns – that contributed to sluggish financial performance.
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“While we believe each of these factors played a role in our first quarter performance, we can’t reliably estimate the impact of each one separately,” he said.
Its annual filings also noted the influence of “conflicting expectations” from customers, shareholders, and employees over its product offerings and social policies.
“We have previously been unable to meet some of those conflicting expectations, which has led to negative publicity and adversely affected our reputation,” Target said.
The retailer is currently on the search for a new CEO to replace Cornell, with Chief Operating Officer Michael Fiddelke, 49, reportedly on the shortlist of candidates – although investors reportedly prefer an external candidate, the Journal said.
There is some good news for the incumbent CEO, however. While Target’s workers are evidently lacking confidence in their employer, 80% said they are still planning to stay with the company.
