Home Depot Announces Layoffs and Office Return as Company Seeks Closer Frontline Connection

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Home Depot to Open 4 New Distribution Centers for Home Professionals
Home Depot unveiled on Thursday its plan to open four new distribution centers designed specifically for the needs of remodelers, contractors, and other home professionals. ROBYN BECK/AFP via Getty Images

Home Depot is laying off hundreds of workers and asking corporate employees to return to the office full time as the company looks to tighten its connection with store teams and customers.

The home improvement giant announced Wednesday that it will cut about 800 jobs tied to its Atlanta store support center and remote corporate roles.

At the same time, Home Depot will require corporate staff to work in the office five days a week starting the week of April 6.

Company leaders say both moves are meant to help the business move faster and stay closer to frontline associates.

According to the NYPost, in a statement, Home Depot said its goal is "to drive greater agility and position the company to move faster and stay even more closely connected with our frontline associates."

CEO Ted Decker echoed that message in a memo to employees, saying the changes are meant to improve speed, focus, and teamwork across the company.

A company spokesperson confirmed that about 150 of the affected roles were based at Home Depot's Atlanta headquarters, while the rest were remote positions. Most of the layoffs impact employees in the technology organization, along with some other corporate teams.

Home Depot said it will offer separation packages, transitional benefits, and job placement support to those affected.

Decker emphasized that being together in person helps the company better support stores and field teams.

"In-person engagement enables more meaningful support for store and field associates, drives results and reinforces our people-centric culture," he wrote.

Home Depot Misses Earnings for Third Straight Quarter

The announcement comes as Home Depot continues to deal with slower demand. After a surge in home improvement spending during the COVID-19 pandemic, sales have cooled.

Higher mortgage rates, economic uncertainty, and fewer people moving homes have made shoppers more cautious, especially when it comes to large renovation projects.

The company has missed Wall Street's earnings expectations for three straight quarters, most recently in November.

Home Depot said it expects fiscal 2025 sales to grow about 3%, with comparable sales turning slightly positive, CNBC reported. Still, it also warned that profits could fall as the housing market remains uneven.

Home Depot's stock has dropped about 10% over the past year, lagging behind the broader market. Shares are up about 9% so far this year, however, showing some renewed investor confidence.

As Home Depot prepares to report its fiscal fourth-quarter earnings on Feb. 24.

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