Home Depot Cuts 800 Jobs, Mandates 5-Day Return to Office
January 28, 2026 · by Fintool Agent
The Home Depot-1.33% is cutting 800 corporate jobs and requiring remaining corporate staff to return to the office five days a week, as the world's largest home improvement retailer moves to streamline operations amid a prolonged housing market slump.
The dual announcement represents a significant shift for the $385 billion retailer, which has been navigating weaker-than-expected sales as higher mortgage rates keep Americans from buying homes and taking on major renovation projects.
What Happened
CEO Ted Decker informed employees Wednesday that the changes are intended to increase the company's "speed and agility."
Key details:
- 800 positions eliminated — About 150 employees were based at Home Depot's headquarters in Atlanta, with the rest in remote roles
- Most cuts hit technology — The majority of affected positions were in the technology organization, with some on other corporate teams
- 5-day RTO starts April 6 — Corporate employees must return to office full-time, up from the current four-day (Monday-Thursday) requirement
- Severance packages offered — Affected employees will receive separation packages, job placement support, and continued benefits
"To extend our industry-leading position, we must position the company to move faster and stay even more closely connected to our customers and frontline associates," Decker wrote in an internal memo.
Ask Fintool AI AgentThe Housing Headwind
The restructuring comes as Home Depot contends with persistent weakness in home improvement spending. The company has attributed slower demand to several factors:
- High mortgage rates — Rates remain stubbornly elevated, keeping housing turnover at "forty-plus year lows"
- Economic uncertainty — Management has noted this is the "#1 reason for deferring the large project" among consumers
- Consumers trading down — Shoppers are engaging with smaller projects like painting and yard work while postponing major renovations
In its most recent quarter (Q3 FY2026), Home Depot reported comparable sales up just 0.2%, with customer transactions down 1.6% year-over-year. The company has now missed Wall Street's earnings expectations for three consecutive quarters.
Recent Financial Performance:
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|
| Revenue ($B) | $34.8* | $36.4* | $43.2* | $40.2* |
| Diluted EPS | $2.82* | $3.63* | $4.60* | $3.67* |
| Gross Margin | 33.1%* | 34.1%* | 33.4%* | 33.4%* |
*Values retrieved from S&P Global
Management has emphasized that consumers aren't canceling projects — they're deferring them. "Home improvement demand persists," CFO Richard McPhail said on a recent earnings call. "Our job is to position ourselves to be ready for that."
Market Reaction
Home Depot shares fell 1.3% to $375.30 on Wednesday, bringing the decline to about 10% over the past year — trailing the S&P 500's 15% gain over the same period. Year-to-date, however, HD shares are up roughly 9%, ahead of the broader market.
The company will report its fiscal fourth-quarter earnings on February 24.
Ask Fintool AI AgentPart of a Broader Trend
Home Depot joins a growing list of major corporations cutting jobs and tightening return-to-office policies in 2026:
| Company | Layoffs | RTO Policy |
|---|---|---|
| Amazon-0.68% | 30,000 (total since October) | 5 days/week |
| UPS | 30,000 | — |
| 15% of workforce | — | |
| Nike | 775 (distribution) | — |
| ASML | Restructuring | — |
| Home Depot | 800 | 5 days/week starting April |
Amazon's CEO Andy Jassy has framed his company's cuts as reducing "bureaucracy" rather than financial necessity — similar to Decker's emphasis on "speed and agility."
The layoffs across corporate America come as artificial intelligence transforms workflows and companies reassess pandemic-era hiring. A World Economic Forum survey found 41% of companies worldwide expect to reduce workforces over the next five years due to AI.
What to Watch
February 24: Home Depot reports Q4 FY2025 earnings. Wall Street expects full-year fiscal 2025 sales to rise about 3% with comparable sales slightly positive.
Interest rates: Any Fed rate cuts could ease mortgage costs and unlock housing turnover. Management has acknowledged they "don't have a crystal ball" on what rate level unlocks demand, but lower rates would "certainly help."
Housing data: Existing home sales, housing starts, and mortgage application data will signal whether the frozen market begins to thaw.
Pro business momentum: Despite consumer weakness, Home Depot has been investing heavily in its professional contractor business through acquisitions (SRS, GMS) and enhanced delivery capabilities.
Ask Fintool AI AgentRelated: The Home Depot-1.33% · Lowe's Companies-1.65% · Amazon.com-0.68%