Home Depot makes pressing workforce decision amid struggles

Core Insights - Home Depot is facing challenges due to a significant shift in consumer behavior, particularly in the home improvement sector, as consumers reduce spending amid housing market uncertainties [1][3] - The company's U.S. comparable sales saw a minimal increase of 0.1% year over year in Q3 2025, while foot traffic at same-store locations decreased by 0.4% compared to Q3 2024 [2] - CEO Ted Decker highlighted ongoing pressures in the housing market, with housing activity at 40-year lows, exacerbated by high interest rates and affordability concerns [3] Housing Market Performance - December 2025 home sales were the strongest in nearly three years, with tight inventory levels and fewer sellers eager to move [5] - The average 30-year fixed-rate mortgage in December was 6.19%, down from 6.24% in November, while the median existing-home sales price reached $405,400, reflecting a 0.4% year-over-year increase [8] Workforce Changes - Home Depot has laid off nearly 800 employees in its store support center in Atlanta due to weak consumer demand [6] - The company is requiring its corporate workforce to return to the office five days a week starting April 6, 2026, after previously allowing four days of in-person work [7] Corporate Strategy - Home Depot is simplifying its corporate operations to better support stores and customers, aiming for greater agility and closer connections with frontline associates [9] - The company has also scaled back its supply chain, leading to job cuts at distribution facilities, including a recent closure in La Vergne, Tennessee, resulting in 108 layoffs [10] Industry Trends - Home Depot's layoffs are part of a broader trend in corporate America, with other companies like Amazon and Meta also announcing significant job cuts [12] - A survey indicated that 6 in 10 companies plan to cut jobs in 2026, with many organizations reducing higher-cost roles and investing in growth and automation [13][14]