On Wednesday, January 28, the largest home improvement retailer in the United States, Home Depot, announced that it will cut 800 jobs and require employees to return to the office for five days a week.
The company stated that this move is aimed at increasing the speed and flexibility of its operations to facilitate future growth.
Headquartered in Atlanta, the home improvement retail giant mentioned that it will provide affected employees with severance packages, transitional benefits, and job placement support.
With rising unemployment rates and soaring housing prices, the demand for housing in the United States has been fluctuating. Meanwhile, the decrease in mortgage rates and the federal funds rate has yet to spur market recovery, impacting the performance of Home Depot and other companies focusing on home improvement in recent years.
Home Depot’s stock has dropped by about 10% in the past 12 months, lagging behind the S&P 500’s rise of 15% during the same period. However, the company’s stock has risen by approximately 9% year-to-date, outperforming the S&P 500’s nearly 2% increase.
In its latest quarterly earnings report, Home Depot expects a significant decline in profit for the 2025 fiscal year. The company will disclose its fourth-quarter earnings on February 24.
In a memo to employees on Wednesday, CEO Ted Decker stated, “To maintain our industry-leading position, we must move faster as a company and maintain closer connections with our customers and frontline employees.”
A spokesperson for Home Depot confirmed to Bloomberg that the company is laying off 800 employees, primarily related to positions at its support center in Atlanta, and is implementing a mandatory five-day office work week.
The spokesperson mentioned that about 150 of the affected employees work at the headquarters in Atlanta, while the rest are in remote positions, mostly in the company’s technology department, with some in other teams.
Decker stated in the memo that employees working from home will return to the office on April 6 to align better with frontline staff. He also added that in-person work can provide more support to employees and drive better results.
(Translated and adapted from a report by Bloomberg)