Home Depot is cutting employee bonuses amid persistent weak sales and a challenging housing market. The retailer has raised the threshold for eligible bonuses from 90% to 95% of sales targets and reduced the payout from 50% to 25% of the target amount. This move follows a 0.4% decline in same-store foot traffic and only a 0.1% increase in U.S. comparable sales during the third quarter.

Home Depot CEO Ted Decker cited ongoing pressure from high interest rates and low housing turnover, noting activity is at 40-year lows as a percentage of housing stock. The bonus changes, set to take effect in September payouts, align with pre-pandemic standards and reflect broader national trends of shrinking bonus use and amounts.