Target Corporation has announced a major leadership shake-up, firing longtime CEO Brian Cornell after more than a decade at the helm. This move comes as the retail giant faces declining sales, plummeting stock value, and growing criticism over its decision to roll back diversity, equity, and inclusion (DEI) initiatives earlier this year.

Cornell, who became CEO in 2024, guided Target through digital expansion and pandemic-era growth. But his final years in leadership have been marked my mounting controversy. In January 2025, Target dismantled several DEI programs, including those designed to support Black employees, entrepreneurs, and community partners. The company described the rollback as a strategic shift, but the backlash from customers and civil rights groups was immediate and unforgiving. What began as an internal restructuring quickly escalated into organized boycotts, viral online campaigns, and a measurable drop in consumer trust.

The numbers reveal the scale of the damage. Target’s stock value has fallen nearly 12% since the rollback, wiping out approximately $12.4 billion in market value. Shares dropped by $27.27 per share in February and 7.9% in March, signaling sustained customer pushback. Same-store sales dropped 2.4% year-over-year in the first quarter of 2025, with revenue falling from $25.2 billion to $24.8 billion. Target was even forced to slash its full-year earnings forecast, cutting projections from $8.80-$9.80 per share to $7 to $9 per share.

The boards decision to oust Cornell reflects not only financial turbulence but also a recognition that the company’s public image is in jeopardy. Lawsuits from investors allege that Target misled shareholders about risks tied to dismantling DEI initiatives, further compounding pressure on leadership. Analysts argue that Target severely underestimated the economic and reputational importance of inclusivity, particularly among younger and more diverse consumers.

Stepping into this storm is Michael Fiddelke, who has been with Target for more than two decades and previously served as the company’s Chief Financial Officer before briefly moving to Chief Operating Officer. Known internally for his deep understanding of Target’s financial operations and supply chain, Fiddelke brings institutional knowledge but little public profile. His appointment suggests the board wanted a leader who understands both the company’s structural challenges and the expectations of Wall Street.

Fiddelke’s challenge is immediate and formidable: stabilizing Target’s declining finances while repairing the fractured relationship with consumers and communities; particularly Black shoppers and employees; who feel abandoned by the rollback. Whether he will attempt to restore portions of the DEI framework or chart a new course entirely remains unclear, but the decision will define Target’s future trajectory.

More broadly, the shake-up underscores a growing reckoning in corporate America. Companies are increasingly being forced to choose between standing firm on DEI commitments or retreating under political pressure. Target’s crisis shows that abandoning equity initiatives is not just a moral decision but a business gamble; and one that, so far, has come at steep cost.