Ethics & Compliance Learning
2025: The Year Companies Rethink DEI Initiatives?
Growing cultural and political scrutiny has positioned Diversity, Equity, and Inclusion (DEI) initiatives as a complex issue for corporations navigating both mixed public opinion and legal risks.
What’s happening now? While some well-known companies are scaling back their DEI programs, others are shifting focus or refining efforts to align with legal and cultural changes. These changes reflect a broader corporate reassessment of various programs’ impacts and missions.
Some companies have now released official statements on what they’re doing now in the DEI space, while others have shared details more informally. Below is a snapshot of some recent developments to watch.
Meta
Meta (formerly known as Facebook) has now scaled back its DEI programs, including those related to hiring, training, and supplier diversity. Meta has cited changes in the legal and policy landscape and the increasingly charged perception of DEI as influencing its decision. Meta says it is redirecting its focus to accessibility and engagement. (See info on Meta’s internal memo here.)
“The term ‘DEI’ … in part … is understood by some as a practice that suggests preferential treatment of some groups over others.” — Janelle Gale, Meta’s vice president of people, in an internal memo
Walmart
Last November, Walmart—which has 1.6 million workers——adjusted its DEI initiatives by not renewing a five-year commitment to a racial equity center. Walmart has withdrawn from the Human Rights Campaign’s Corporate Equality Index as part of a broader rollback of its DEI initiatives, including ending its racial equity center and supplier diversity considerations.
Amazon
Amazon is reviewing its DEI initiatives, now focusing, they say, on programs with more tangible and proven outcomes while fostering a more inclusive culture. This includes integrating DEI goals into existing processes and unifying employee resource groups under a single framework. (See info on internal memo here.)
“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture.” — Candi Castleberry, Amazon’s VP of inclusive experiences and technology, in an internal memo
McDonald’s
McDonald’s announced it will retire specific goals for achieving diversity at senior leadership levels and end a program that encourages its suppliers to develop diversity training. (See the company memo here.)
“Last year, we completed a comprehensive Civil Rights Audit (CRA) that looked at all aspects of inclusion across our system. We also engaged with shareholders to understand their expectations and assessed the overall landscape of shareholder proposals … and, finally, we benchmarked our approach to other companies who are also re-evaluating their own programs.” — McDonald’s memo
John Deere
John Deere announced ceasing sponsoring social or cultural awareness events like Pride parades and audit training materials to remove socially motivated messages. Employee resource groups will now focus on professional development, networking, mentoring, and supporting talent recruitment efforts. (See John Deere’s statement here on X.)
“…Deere is always listening to feedback and looking for opportunities to improve. That’s why we consistently prioritize internal policies that more closely align our business strategy to meet the needs of our customers. … We remain committted to listening to our customers, employees, and other key stakeholders.” — John Deere’s statement on their X account, July 16, 2024, with 6.5 million views.
Lowe’s
Lowe’s has scaled back its DEI policies, including ceasing participation in the Human Rights Campaign’s workplace inclusion survey for LGBTQ+ employees.
Tractor Supply
Tractor Supply announced the elimination of DEI roles and the retirement of current DEI goals. The company also will stop sponsoring non-business activities like Pride festivals and voting campaigns to refocus on core business efforts.
Harley-Davidson
In April 2024, Harley-Davidson ended its DEI initiatives, including eliminating hiring quotas and supplier diversity spending goals. (See their statement on X here.)
“…[We] have not operated a DEI function since April 2024, and we do not have a DEI function today. We do not have hiring quotas and we no longer have supplier diversity spend goals. … Training provided will be related to the needs of the business and be absent of socially motivated content – only legally required training has ever been mandatory at Harley-Davidson. — Harley-Davidson’s statement on X on August 19, 2024, with 2.6 million views.
Apple
Apple’s board is urging shareholders to vote against a proposal from the National Center for Public Policy Research to eliminate its DEI initiatives. The proposal—citing the Supreme Court’s affirmative action ruling—states DEI programs pose legal and reputational risks. Apple maintains its existing compliance protocols address such concerns and asserts the proposal is unnecessary and hinders the company’s ability to manage its operations. The shareholder vote is scheduled for February 25. (Information via Forbes.)
Ford Motor Company
Ford has reduced its DEI efforts, including withdrawing from the Human Rights Campaign’s Corporate Equality Index and eliminating quotas for minority dealerships and suppliers. The company stated it would avoid taking positions on divisive social and political issues, choosing instead to prioritize the well-being of employees and customers.
“As we work together to build an even brighter future, we are mindful that our employees and customers hold a wide range of beliefs, and the external and legal environment related to political and social issues continues to evolve.” — Ford’s statement via X, with 87K views
Lowe’s
Lowe’s has scaled back its DEI programs, ending participation in inclusion surveys and revising internal policies to stop sponsoring parades and festivals. The focus now is on aligning its efforts with business objectives. They will also no longer be part of an annual Human Rights Campaign survey that analyzes LGBTQ+ inclusion measures. Additionally, they will end both sponsoring and taking part in events like parades or festivals, other than ones tied to the actual business itself. (Per AP News memo.)
Molson Coors
Molson Coors has decided to eliminate DEI training and remove specific diversity targets for suppliers. The company will also drop diversity goals from executives’ compensation plans.
Toyota
Toyota is refocusing its community initiatives to center on STEM education and workforce readiness. Broader DEI programs are being scaled down to ensure closer alignment with business priorities.
Microsoft
Microsoft recently made changes to its DEI structure by laying off its DEI team, citing shifting business needs. The company has set ambitious goals for leadership diversity in the meantime.
“True systems-change work associated with DEI programs everywhere are no longer critical or smart,” — Microsoft internal email, via Business Insider
Zoom
Zoom hired a chief diversity officer–its first one–in 2020, who later left the company, without someone else taking their place afterward. Zoom has since disbanded its internal DEI team when they were making layoffs last year and cut about two percent of its total workforce. Zoom says they plan to work with external constituents to promote inclusion in new ways across the company.
“[We have to] change our approach to DEI.” — Zoom’s chief operating officer, Aparna Bawa via Bloomberg
Final Thoughts
The evolving landscape of DEI initiatives presents both challenges and opportunities for organizations striving to balance compliance, public perception, and business goals. As companies reassess and adapt their strategies, the need for a thoughtful and effective approach is urgently critical.
Let’s Start a Conversation
SAI360 is here to help your organization navigate the evolving DEI landscape. Our team can provide insights and tailored solutions to align your DEI strategies with current cultural and legal expectations. Together, we can build a more inclusive and effective organizational culture.
Schedule a virtual coffee with a team member:
