Home Depot faces challenges as consumer spending on home improvement declines amid housing market uncertainty. The company’s U.S. comparable sales only rose by 0.1% in Q3 2025, with foot traffic dropping by 0.4%. CEO Ted Decker attributes this to housing market pressures and consumer uncertainty. Despite this, the housing market is slowly recovering with decreasing mortgage rates.

Amid the housing market recovery, Home Depot announces layoffs and a return-to-office policy for corporate employees. Almost 800 employees were laid off in Atlanta, and the remaining workforce is expected to return to offices five days a week starting April 6. This decision aims to streamline operations and increase agility to better support stores and customers.

Home Depot’s workforce reduction follows recent supply chain cutbacks, resulting in layoffs at its distribution facilities. The company is investing in artificial intelligence tools to enhance operations and is expanding its partnership with Google Cloud to aid shoppers and associates. The layoffs align with a broader trend of job cuts in various industries, driven by factors like AI, reorganization, and budget constraints.

The move to bring employees back to the office mirrors a broader trend in the corporate world, with companies like JPMorgan Chase and Amazon scaling back remote work policies. A recent survey indicates a shift towards in-office work, with increasing office visits seen in 2025. The push for in-office work is driven by factors such as increased collaboration, agility, and customer service.

The shift towards in-office work and layoffs at companies like Home Depot reflect broader trends in the workforce, with a focus on efficiency, agility, and growth. As companies navigate challenges like AI integration and restructuring, layoffs are expected to continue. Companies are reshaping their workforce to align with new operating models and strategic priorities.

Read more at Yahoo Finance: Home Depot makes pressing workforce decision amid struggles