It’s not every day a Fortune 500 giant has top execs ousted in one afternoon—and when it does, it’s rarely just about “pursuing new opportunities.” Target’s leadership shakeup isn’t a routine reshuffle. It’s the fallout of deeper trouble: political boycotts from both ends of the spectrum, rising tariffs straining margins, and a fractured customer base unsure where the brand stands.
In just one week, Target lost two senior leaders, overhauled its internal structure, and reported a 2.8% drop in sales. That’s not bad press—it’s a full-blown identity crisis. Behind the headlines is a much bigger story about what it now takes to lead, survive, and adapt in corporate America. Stick around—there’s more going on here than meets the eye.
Corporate Shake-Ups Are Becoming the Norm
Leadership chaos isn’t unique to Target. Across the retail world, companies are rethinking strategy as consumer confidence hits a 13-year low. Political polarization, rising tariffs, and shifting shopper habits are creating the kind of instability traditional playbooks can’t fix. The result? Executive departures, sudden pivots, and nervous investors watching for signs of resilience.
Businesses that once operated on predictable quarterly cycles now face daily disruptions that test leadership teams in new ways. What’s happening at Target mirrors a broader reckoning across corporate America—a reckoning that’s redefining how companies must lead through uncertainty. And the pressure is starting to show in surprising ways.
Tariffs Tighten the Squeeze
Target’s Q1 2025 sales fell 2.8% to $23.85 billion, missing Wall Street expectations. CEO Brian Cornell cited cautious consumer spending and tariff pressures as primary factors. The company anticipates a low-single-digit sales decline for the full year, revising down previous projections of a 1% increase.
To mitigate tariff impacts, Target is shifting sourcing away from China and adjusting pricing strategies. Despite these efforts, the retailer continues to lag behind competitors like Walmart, whose grocery-centric model offers better tariff resilience.
DEI Retrenchment Sparks Backlash
In January 2025, Target announced the termination of its REACH initiative and rebranded its Supplier Diversity program to Supplier Engagement, marking a significant rollback of its DEI commitments. This move triggered public backlash, legal scrutiny, and investor uncertainty.
Since the rollback, Target’s stock has dropped 12%, and investors have filed lawsuits claiming the company misled them about the financial risks of cutting DEI efforts. Civil rights leaders launched boycott campaigns, urging consumers to shift spending to companies that maintain strong DEI commitments.
Boycotts Hit Black-Owned Brands
Target’s rollback of DEI initiatives has led to consumer boycotts that are negatively impacting Black-owned businesses stocked by the retailer. Brands like Play Pits and Beautiful Curly Me reported significant sales declines. Despite reduced revenue, some entrepreneurs support the boycott’s intent and are exploring alternative ways to connect with consumers.
Target maintains that it continues to support emerging brands, though affected Black entrepreneurs fear reduced shelf presence and future partnership uncertainty as ramifications of the policy change and ongoing boycotts.
The Executive Departures – A Closer Look
Target recently let go of two top executives: Christina Hennington, who led the company’s racial equity programs, and Amy Tu, its chief legal officer focused on DEI compliance. Both departures were classified as “involuntary termination without cause.” Hennington had been with Target for 22 years.
Tu joined just nine months ago with a $10.5 million compensation package. Their exits weren’t isolated—they signal a deeper reset. Target also announced an “Enterprise Acceleration Office,” a new structure aimed at faster, centralized decision-making. With sales down 2.8% and criticism from both political sides, Target is pivoting sharply. What’s next for the company is still unfolding.
Amy Tu’s Short, Costly Tenure at Target
Amy Tu joined Target just nine months ago, lured from Tyson Foods with a compensation package exceeding $10.5 million. Her brief time at Target involved overseeing the company’s legal and compliance operations, including DEI compliance—an area she had long advocated for. Her tenure followed Don Liu’s, a legal chief who emphasized metrics like diversity and risk in choosing outside counsel.
Now, Tu leaves with a severance potentially worth more than $8 million, plus vested long-term incentives and relocation benefits. Target even purchased her Arkansas home, incurring over $146,000 in transaction costs. Her abrupt exit raises questions about the company’s shifting priorities.
Christina Hennington’s 22-Year Legacy Ends Abruptly
Christina Hennington spent more than two decades rising through the ranks at Target, most recently serving as chief strategy and growth officer. She played a pivotal role in shaping the company’s racial equity action and change committee and helped launch a $2 billion initiative to support Black-owned businesses. Her termination—also classified as “without cause”—follows a turbulent year in which Target rolled back DEI programs under political pressure.
Hennington will transition to a strategic advisory role before officially departing on September 7. She earned $4.6 million in 2024 and could receive nearly $7.7 million in severance and compensation following her departure.
The “Enterprise Acceleration Office”: Restructuring Underway
As it lets go of longtime DEI supporters, Target is restructuring internally through a new “Enterprise Acceleration Office.” This initiative is meant to streamline operations and speed up decision-making amid falling sales and political scrutiny. Melissa Kremer, head of human resources, will temporarily oversee legal and compliance while the company searches for Amy Tu’s replacement.
The shift suggests a move toward centralized leadership and tighter control over messaging and compliance. Whether this structure will steady Target’s public image; or deepen internal divisions, is still unclear. What’s certain is that Target is betting on speed and efficiency to regain its competitive edge.
Millions in Severance as Shareholders Watch Closely
Despite their involuntary terminations, both Hennington and Tu are walking away with multimillion-dollar packages. Tu’s severance could top $8 million, while Hennington may receive nearly $7.7 million, depending on future disclosures. These generous payouts, especially during a period of declining sales and executive reshuffling, are drawing scrutiny.
Target is likely to face pressure from investors and the public alike to justify such compensation amid cost-cutting and culture clashes. As more financial details become available, shareholder groups may question whether Target’s executive realignment is about accountability, or simply optics.
A New Playbook for Business Leadership
Target’s leadership shake-up reveals a broader truth: today’s corporate leaders must be both politically aware and operationally nimble. Traditional management strategies aren’t enough when culture and commerce collide. Boards are starting to favor speed, flexibility, and risk management over legacy experience. Target’s new internal restructuring suggests a move away from executive-driven leadership to more adaptable systems.
Whether that’s sustainable remains to be seen. But the stakes are high. As business and politics become increasingly entangled, companies must find ways to lead without losing trust. Target’s next chapter may offer a preview of how the future of corporate America gets written.
Discover more DIY hacks and style inspo- Follow us to keep the glow-up coming to your feed!
Love content like this? Tap Follow at the top of the page to stay in the loop with the latest beauty trends, DIY tips, and style inspo. Don’t forget to share your thoughts in the comments — we love hearing from you!