Major U.S. Companies Scale Back DEI Initiatives Amid Political Pressure

DAVOS, Switzerland – Major U.S. companies, including Meta, Walmart, and Amazon, have scaled back or abandoned diversity, equity, and inclusion (DEI) initiatives, a trend that began months before President Donald Trump launched a nationwide campaign to dismantle such programs. The shift underscores a broader change in corporate priorities, with some firms citing legal and policy challenges as reasons for the rollbacks.

On Jan. 20, 2025, Trump issued sweeping orders to eliminate DEI programs across federal agencies, urging private companies to follow suit. However, Reuters found that several corporations had already begun curtailing their DEI efforts as early as 2023. Meta, for instance, stated in an internal memo on Jan. 10 that the legal landscape surrounding DEI initiatives was evolving, prompting the company to reassess its programs.

Data reviewed by Reuters revealed patchy progress in promoting gender and racial diversity among nine major U.S. companies, including Meta, Walmart, Amazon, Starbucks, Deere & Co, Ford, Boeing, McDonald’s, and Lowe’s. Only four of these companies increased the proportion of female employees since the COVID-19 pandemic, with marginal gains in mid-level management roles. Hispanic and Black women remained significantly underrepresented, averaging just 5% of mid-level managers in 2023.

At Amazon, the percentage of female mid-level managers rose from 29.5% in 2020 to 32% in 2023. Similarly, Deere & Co saw a modest increase from 27.2% to 28.4% over the same period. However, Meta and Ford experienced declines in female representation among mid-level managers, dropping to 29.8% and 24.8%, respectively, in 2023.

Laura Sanderson, Co-Head of Europe, Middle East & India at Russell Reynolds Associates, emphasized the importance of fostering diversity in middle management. “It’s not enough to just have women on your executive committee. You need them in the right roles to be preparing them,” she said.

The retreat from DEI initiatives marks a reversal from the corporate momentum seen after the 2020 murder of George Floyd and the global #MeToo movement. In 2023, the U.S. Supreme Court’s decision to strike down affirmative action in university admissions further emboldened conservative groups to challenge workplace DEI programs.

Carlota Esguevillas, head of responsible investment at EdenTree Investment Management, noted that companies are increasingly reluctant to champion DEI efforts. “In a shift from recent years, companies are no longer willing to put their head above the parapet,” she said.

Despite the backlash, some firms, such as Apple, have resisted pressure to abandon DEI programs. Apple’s shareholders recently rejected a proposal to abolish the company’s diversity initiatives, signaling continued support for inclusive practices.

The rollbacks have sparked criticism from advocacy groups and community leaders. Andi Otto, Executive Director of Twin Cities Pride, expressed disappointment after Target announced it would curtail its DEI programming. “This was kind of the straw that broke the camel’s back,” Otto said, noting that Target’s decision led to its exclusion from the annual Pride festival and parade.

As companies navigate the evolving DEI landscape, experts warn that the retreat from diversity initiatives could exacerbate workplace inequities. Alexis Krivkovich, a senior partner at McKinsey, cautioned, “It’s the first time we’ve seen a material step back, and that really concerns me.”