Home Depot Cuts 800 Jobs and Orders Full Office Return

Home Depot laid off about 800 corporate employees on Wednesday and told those who remain to work in the office five days a week starting the week of April 6. The job cuts hit roles at the company's store support center near Atlanta, many of them remote technology positions, as the home improvement retailer faces slower sales from fewer home purchases and less spending on big projects.

Background

Home Depot has dealt with a slowdown in demand over the past year. Middle-class shoppers have pulled back on home renovations due to high interest rates and a sluggish housing market. In the third quarter, the company reported net sales of $41.4 billion, up 2.8% from the year before, but comparable sales rose only 0.2%. Operating income fell 1.2% to $5.4 billion, and net income dropped 1.3% to $3.6 billion. Two months ago, Home Depot missed profit expectations and lowered its full-year guidance.

The retailer has pointed to consumer uncertainty and a slow housing market in recent earnings calls. High interest rates have frozen much of the housing market, making it harder for people to buy or sell homes. This has led to fewer big renovation projects, a key driver for Home Depot's sales. Affordability issues have grown, with tariffs adding to costs and homeownership out of reach for more Americans. Immigration enforcement has also caused disruptions, including federal raids at some store parking lots.

Home Depot ranks as one of the largest private carriers in North America and has invested billions to attract more professional contractors, or 'pros.' The company has launched AI tools to help these customers with tasks. Still, sales pressure has built up across the retail sector.

Key Details

The layoffs targeted the store support center in the Vinings area near Atlanta, the company's headquarters. A company spokesperson said many of those let go worked remotely, with about 150 reporting to the center's offices. The cuts focused on technology roles but spread across other areas.

Support for Affected Workers

Home Depot is providing separation packages, transitional benefits, and job placement help to those laid off. CEO Ted Decker informed employees about the changes in a letter sent Wednesday. He said the company expects to file a notice with the state about the job cuts.

Remaining corporate employees currently go to the office four days a week, Monday through Thursday. The new policy requires five days, Monday through Friday, to start in early April. Decker wrote that in-person work enables better support for store and field associates, drives results, and strengthens the company's people-focused culture.

“We’re simplifying our corporate operations to better support our stores and our customers,” the spokesperson said. “Our goal is to drive greater agility and position the company to move faster and stay even more closely connected with our frontline associates.”

“These changes are essential to simplify our business and focus our energy on the priorities ahead,” Decker said in the letter to employees.

Last year, Home Depot moved to a four-day office requirement. In September, it announced a $140 million project to expand the Vinings headquarters and renovate two other corporate campuses. The plan includes adding a child care center and creating about 250 full-time jobs, plus 150 more across departments. A tax break of roughly $7 million was approved in December. The company says those hiring plans remain on track.

When asked about AI's role, spokesperson Sara Gorman said the company has used it in operations for some time. The layoffs focus on aligning the business with core priorities, stores, and frontline workers.

What This Means

These moves place Home Depot among other retailers announcing layoffs this year. Amazon cut 16,000 positions on Wednesday, its second round in months. Nike laid off nearly 800 workers to consolidate U.S. distribution centers. Expedia and others have also reduced staff. UPS plans 30,000 cuts as part of its business changes.

The retail industry has seen heavy job losses. From January to October last year, it recorded 88,664 cuts, up 145% from 2024, according to a report from Challenger, Gray & Christmas. Retail remains one of the hardest-hit sectors.

Labor markets have shifted. Economist Roger Tutterow noted at a recent event that companies used to hoard workers to keep talent three years ago. Now, job growth has slowed, and reductions are more common. The Federal Reserve's recent Beige Book mentioned Atlanta-area firms planning force reductions due to slowing demand and rising costs.

For Home Depot, the changes aim to make the company quicker and more connected to customers and store workers. Decker said they position the retailer to extend its lead in home improvement, deliver better experiences, and win more business from pros. The five-day office rule seeks to align corporate teams with frontline staff.

The job cuts reduce corporate overhead at a time when sales growth has stalled. Fewer remote roles mean more in-person collaboration, which the company believes will boost support for stores. As the housing market stays slow, Home Depot must adapt to lower demand for tools, materials, and appliances. Store associates, who deal directly with customers, stand to gain from streamlined corporate help.

Broader economic pressures continue. High rates keep mortgages expensive, delaying home buys and flips. Shoppers focus on essentials over upgrades. Home Depot's focus on pros could help, as contractors keep working even in tough times. But overall, the retailer faces a test in maintaining profits amid cutbacks.

Employees now face a full return to offices, ending much hybrid flexibility. This matches trends at other firms pushing back-to-office policies. For those laid off, support packages offer a bridge, but finding new jobs in a cooling market adds challenge. Home Depot's campus expansions signal long-term commitment to the area, even as it trims staff.