U.S. Companies Scale Back DEI Initiatives Amid Political and Legal Pressure
Several major U.S. companies, including Target, Walmart, Meta, and McDonald’s, are scaling back their diversity, equity, and inclusion (DEI) initiatives amid growing political and legal pressure. These rollbacks come as President Donald Trump’s administration moves to dismantle DEI programs within the federal government, signaling a broader shift in corporate America’s approach to diversity efforts.
Target announced it would phase out its three-year DEI goals, including initiatives aimed at increasing hiring and promotions for employees of color and women, as well as its Racial Equity Action and Change (REACH) program. The retailer also stated it would no longer participate in external diversity surveys, such as the Human Rights Campaign’s Corporate Equality Index, and would shift its Supplier Diversity team to a Supplier Engagement team. This decision follows Target’s previous retreat from LGBTQ+ advocacy after conservative backlash against its Pride Month merchandise in 2023.
Similarly, Walmart, Meta, and McDonald’s have scaled back or ended DEI programs. Walmart discontinued its five-year commitment to racial equity initiatives, while Meta eliminated its “diverse slate” hiring approach and disbanded its DEI team. McDonald’s retired specific diversity goals for senior leadership and paused external surveys related to DEI. These companies cited the 2023 Supreme Court decision outlawing affirmative action in college admissions as a catalyst for reevaluating their DEI policies.
President Trump has accelerated the anti-DEI movement by signing executive orders to end DEI programs within the federal government. The U.S. Office of Personnel Management directed agencies to place DEI employees on paid leave and submit plans for layoffs by January 31, 2025. Trump has labeled DEI programs as “discriminatory” and “illegal,” aligning with conservative activists who argue that such initiatives prioritize identity over merit.
Despite the retreat by some companies, others like Costco, Microsoft, and JPMorgan Chase have reaffirmed their commitment to DEI. Costco’s board defended its diversity programs, stating they enhance the company’s ability to attract and retain talent. Meanwhile, DEI advocates warn that rolling back these initiatives could harm marginalized groups and stifle innovation, as diversity programs often address systemic inequities and foster inclusive workplaces.
The future of DEI in corporate America remains uncertain as companies navigate legal challenges, political pressure, and shifting public sentiment. While some businesses are doubling down on their commitments, others are retreating, reflecting a broader debate over the role of diversity and inclusion in the workplace.
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