Target Faces Yet Another Strike Amidst DEI Controversy and Economic Pressure

InvestorHire News Exclusive: Target Faces Yet Another Strike Amidst DEI Controversy and Economic Pressure

March 5, 2025

For the second time in just over a year, Target employees have walked off the job in a massive labor strike, citing ongoing dissatisfaction with the company’s rollback of diversity, equity, and inclusion (DEI) initiatives and its handling of economic pressures. This latest strike is yet another chapter in the ongoing turmoil faced by the retail giant as it continues to grapple with public backlash, plummeting sales, and internal dissent.

A History of Discontent: Past Strikes and Boycotts

Target has long been viewed as a progressive company, praised for its multimillion-dollar contributions to Black economic empowerment and LGBTQ+ advocacy. However, that reputation took a hit in January when the Minnesota-based corporation announced it was dismantling its DEI hiring, supplier recruitment, and promotion initiatives, despite not being legally required to do so under President Donald Trump’s executive orders targeting DEI programs in the public sector.

Following the rollback, a nationwide 24-hour economic blackout was organized by the People's Union USA on February 28, which led to a 9% drop in Target’s web traffic—more than any other major retailer. This was followed by a 40-day spending fast spearheaded by Atlanta pastor Rev. Jamal Bryant, calling on consumers to boycott Target in protest of its DEI backpedaling.

These consumer actions compounded an already shaky economic standing for Target, which saw a 13% drop in its stock price and reported declining February sales. The company also warned that tariffs imposed by the Trump administration on Canada and Mexico would increase “profit pressure” and likely result in price hikes for essential goods.

Current Strike: Employee Demands and Growing Discontent

While previous actions against Target were largely consumer-driven, the latest strike marks a significant shift, with thousands of employees across multiple states walking off the job in solidarity. Workers are protesting not just the elimination of DEI programs but also poor working conditions, stagnant wages, and unfair labor practices.

“Target has abandoned its commitment to inclusivity, and it’s left employees—especially those from marginalized communities—feeling expendable,” said one striking employee in Minneapolis. “This company built its reputation on diversity, and now it’s throwing it all away just to appease a political agenda.”

Union organizers have listed several demands, including:

• The reinstatement of DEI hiring and supplier diversity programs.

• Higher wages and better benefits for frontline workers.

• More transparency regarding internal decision-making processes.

• An end to what employees describe as retaliatory practices against workers who speak out.

Target’s History of Legal Controversy and Allegations of Corruption

Beyond the current protests, Target has faced multiple lawsuits over the years, further damaging its reputation. Some of the most notable cases include:

• Racial Discrimination Lawsuits: In 2018, Target paid $3.7 million to settle allegations that it engaged in hiring discrimination against Black and Latino job applicants due to its background check policies.

• Gender Discrimination Allegations: A class-action lawsuit was filed in 2021 by female employees claiming they were systematically paid less than their male counterparts for equivalent roles.

• Labor Violations: Target has been accused of wage theft and misclassifying workers to avoid paying overtime, leading to multiple legal disputes and settlements over the past decade.

• Consumer Protection Issues: In 2022, the company agreed to pay a $5 million settlement over deceptive pricing practices after an investigation revealed price discrepancies between in-store and online listings.

What Comes Next? The Potential Fallout for Target

Target’s leadership has remained largely silent in response to the ongoing strike, but analysts warn that continued labor disputes could further destabilize the company’s financial outlook. The retailer had already planned to add 20 new stores this year and projected an additional $15 billion in sales by 2030, but these ambitions could be jeopardized if the company fails to address internal and external concerns.

Consumer behavior also remains a critical factor. While some conservative-leaning customers may applaud Target’s DEI rollback, the economic impact of progressive boycotts and labor strikes could outweigh any potential gains from that demographic shift. Additionally, rival retailers such as Costco— which has doubled down on its commitment to DEI—have reported increased sales and customer loyalty in response to Target’s missteps.

Industry experts predict that unless Target makes significant policy changes, the company will continue to face mounting legal battles, financial losses, and employee dissatisfaction. With Rev. Bryant’s boycott set to end on April 17, the retailer may soon face “Phase 2” of the movement—a phase whose details remain undisclosed but could spell even greater trouble for the embattled corporation.

As Target struggles to navigate these turbulent waters, one thing is clear: its actions over the next few months will determine whether it can regain consumer trust or continue its downward spiral.

InvestorHire will continue to monitor the situation and provide updates as they unfold.