DEI backlash: From Meta to Walmart, here are top US companies scaling back or abandoning Diversity programs

  • Several major US companies are scaling back or ending their diversity, equity, and inclusion (DEI) initiatives. Companies like Meta, Amazon, McDonald's, and Walmart are reevaluating their DEI programs, with some eliminating diversity-focused hiring practices.

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Updated24 Jan 2025, 06:27 PM IST
McDonald's is halting diversity initiatives, including senior leadership diversity goals and minority supplier programs, and pausing participation in workplace inclusion surveys.
McDonald’s is halting diversity initiatives, including senior leadership diversity goals and minority supplier programs, and pausing participation in workplace inclusion surveys.(REUTERS)

Several prominent US companies have scaled back or discontinued their diversity, equity, and inclusion (DEI) initiatives, following a shift in public sentiment after the 2020 protests sparked by the killing of George Floyd.

The US Supreme Court’s 2023 ruling against affirmative action in college admissions has emboldened critics who argue that programs focused on race, gender, and sexual orientation are unfair. These initiatives, which were once seen as countermeasures to discrimination, are now facing scrutiny from conservative activists.

Here are some companies pulling back on DEI:

Meta Platforms: The parent company of Facebook and Instagram is eliminating its DEI program, which included policies for hiring, training, and selecting vendors. Meta cited the Supreme Court ruling as a reason for reevaluating its approach. It will also end its “diverse slate approach” to hiring, which prioritized a diverse pool of candidates for each position.

Amazon: Amazon is winding down certain DEI programs, focusing on those with proven outcomes, according to a memo sent to employees. The company is also working to foster a more inclusive culture without relying on individual employee-led programs.

McDonald’s: The fast-food giant is halting some of its diversity initiatives, including specific diversity goals for senior leadership and programs aimed at increasing minority representation among suppliers. McDonald’s will also pause participation in external workplace inclusion surveys.

Walmart: Walmart confirmed it would not renew its commitment to an equity racial center set up in 2020 and would cease participation in the Human Rights Campaign's Corporate Equality Index. It also announced that race and gender would no longer factor into supplier contracts and that demographic data would not be used for financing eligibility.

Ford: Ford's CEO announced changes to the company's DEI policies, which will no longer include participation in the Corporate Equality Index. The automaker does not use quotas for hiring or compensation tied to diversity goals but remains committed to creating a safe and inclusive workplace.

Lowe's: Lowe's has reviewed its programs post-Supreme Court ruling and decided to consolidate employee resource groups into one umbrella organization. The company also opted out of the HRC index and stopped sponsoring events outside its core business areas.

Harley-Davidson: Harley-Davidson has pulled back from supporting various sponsorships and organizations, including those related to diversity and LGBTQ rights. The company now focuses on growing the sport of motorcycling and supporting first responders, military members, and veterans.

Brown-Forman: The parent company of Jack Daniels has withdrawn from the Human Rights Campaign's Corporate Equality Index and will review its DEI policies. The company has decided to remove its diversity and supplier goals, aligning its focus with business performance.

John Deere: John Deere announced it would no longer sponsor social or cultural events and would audit its training materials to ensure compliance with federal and local laws. The company clarified that diversity quotas and pronoun identification are not part of its policy.

Also Read | What is Meta’s men’s room tampon policy, why are US companies cutting DEI jobs?

Tractor Supply: Tractor Supply has eliminated its DEI roles, ended current DEI goals, and will no longer sponsor non-business activities such as Pride festivals. The company also shifted focus away from carbon emission goals and will prioritize land and water conservation efforts.

Also Read | US govt workers in federal DEI offices to be put on paid leave: White House

These changes reflect a broader trend among US companies responding to shifting public and legal pressures regarding diversity and inclusion practices.

(With AP inputs)

Key Takeaways
  • Major corporations are reevaluating their DEI initiatives due to changing public sentiment and legal challenges.
  • The US Supreme Court’s ruling against affirmative action has influenced companies to adjust their diversity strategies.
  • The retreat from DEI programs may signal a broader cultural shift in corporate America regarding diversity efforts.

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First Published:24 Jan 2025, 06:26 PM IST
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