Home Depot (HD) is cutting 800 jobs as the home improvement giant makes efforts to streamline operations and deal with slowing sales. The layoffs primarily affect roles at the company’s Atlanta store support center, with a large share coming from its technology team.
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The company said that the job cuts are part of a larger plan to “simplify” its corporate operations. A spokesperson said the goal is to help the company “move faster and stay even more closely connected with our frontline associates.”
The company also requires corporate staff to return to the office five days a week, ending remote‑work flexibility. CEO Edward Decker said that in‑person work is important for boosting speed, collaborating better, and supporting store teams.
Slowing Home Improvement Spending Prompts Job Cuts
The cuts come as Home Depot has been facing slower sales as fewer people are buying homes, mortgage rates remain high, and consumers are pulling back on big home improvement projects after the pandemic renovation boom.
Importantly, the company also missed earnings estimates for the third quarter in a row and lowered its full-year profit outlook, thereby adding pressure to reduce costs. In Q3, net sales grew only 2.8%, while profits fell compared to the previous year.
Part of a Larger Trend in the Retail Sector
Several major retailers have announced job cuts recently as they adjust to slower consumer spending, higher costs, and companies prioritizing artificial intelligence (AI).
- Amazon (AMZN) has announced a massive reduction of 16,000 corporate roles globally. The e-commerce giant aims to “remove bureaucracy” and reallocate funds toward generative AI. The cuts will heavily impact Amazon Web Services (AWS) and its retail operation.
- Nike (NKE) is eliminating about 775 jobs across its Tennessee and Mississippi distribution centers as part of a supply chain “sharpening” effort.
- Logistics provider UPS (UPS) plans to cut 30,000 operational roles in 2026.
- The athleisure brand, Lululemon (LULU), cut nearly 100 part-time positions in its North American contact center to transition to an all-full-time staffing model.
Is HD Stock a Good Buy?
Turning to Wall Street, HD stock has a Moderate Buy consensus rating based on 17 Buys, five Holds, and one Sell assigned in the last three months. At $407.67, the average Home Depot stock price target implies an 8.63% upside potential.
