Meta Platforms, Amazon, and other major companies are scaling back their diversity, equity, and inclusion (DEI) programs. This shift comes amid a changing legal and political landscape, with critics arguing that such initiatives are discriminatory and distracting from business performance. Meta announced it would end its key DEI efforts, citing a Supreme Court ruling on race in college admissions and the increasingly contentious nature of the term “DEI.” The tech giant will continue to seek diverse staff but will move away from current selection procedures that emphasize diverse candidate pools.
Amazon also plans to realign its diversity initiatives, focusing on programs with “proven outcomes” and phasing out outdated materials. By the end of 2024, the company aims to unify its “employee groups” under a single umbrella. These changes reflect a broader retreat from DEI efforts that began two years ago, with companies like Walmart and McDonald’s backing off following criticisms of “woke” progressive activism.
Recent court decisions, such as the Supreme Court’s 2023 rulings and a court of appeals decision invalidating a Nasdaq policy on board diversity, have emboldened critics and added legal pressure on firms.
Major firms pulling back on DEI
Reactions to these shifts have been mixed.
Conservative activists have celebrated the rollback, while advocacy groups like the Human Rights Campaign have criticized it, arguing that inclusive policies are crucial for attracting top talent and supporting long-term business growth. Some companies, however, continue to defend their DEI policies. Costco is recommending shareholders vote against a proposal to dismantle its DEI program, stating that a diverse workforce drives innovation and expands markets.
Target is also defending itself in court against a conservative advocacy group’s lawsuit alleging the retailer misled investors about the financial risks of its DEI practices. As businesses navigate this complex landscape, the future of corporate diversity initiatives remains uncertain. The ongoing debate underscores the challenges companies face in balancing inclusivity with compliance and political risks in an increasingly polarized environment.
