DEI Rollbacks: What Companies Are Doing in 2025

Author
Recent Posts

Sarah Akida is a writer who really believes in the power of mental wellness and equity at work. She shares her thoughts in a way that encourages inclusive practices, helping everyone feel valued and supported in their workplaces.

Companies Rolling Back DEI Initiatives:

Several major companies, including Meta, Amazon, McDonald’s, and Target, have significantly reduced or restructured their DEI efforts. These moves have been driven by policy shifts, legal challenges, and changing attitudes toward inclusion initiatives.

Amazon

Amazon has significantly reduced its DEI commitments in response to legal challenges surrounding workplace culture and federal diversity policies. Over the past year, the company has phased out various inclusion initiatives, including leadership training programs aimed at advancing underrepresented employees and funding for employee resource groups (ERGs) that supported diverse teams. Additionaly, Amazon has reduced its supplier diversity program, which previously allocated contracts to minority-owned businesses, and has shifted its recruitment focus away from explicit diversity hiring goals. The company now emphasizes a “merit-based” approach, sparking debates on whether these policy shifts will hinder the representation of women, Black women, and other historically marginalized groups within Amazon’s workforce.

Consumer advocacy groups and employees have voiced concerns that these changes undermine Amazon’s previous commitments to fostering an inclusive environment. While Amazon maintains that the adjustments will not affect its broader commitment to workplace culture, employees report growing uncertainty about how these shifts will impact career advancement and team dynamics.

McDonald’s

McDonald’s recently announced a rollback of key inclusion programs, particularly those aimed at supplier diversity and diverse workforce recruitment. In the wake of the organization’s DEI rollbacks, lawsuits claiming that certain DEI efforts led to unfair advantages for Latino and Hispanic students have been filed. The company’s annual reports now focus more on general workplace culture rather than specific DEI training initiatives. Business leaders at McDonald’s have justified these changes as necessary to attract the best talent while avoiding legal action following executive orders, in particular, the “Ending Radical And Wasteful Government DEI Programs And Preferencing.”.

Target

Target ended its Racial Equity Action and Change (REACH) initiative this year, stating that it had completed its “three-year DEI roadmap.” However, employees and consumers may argue that the decision represents a retreat from DEI efforts rather than a strategic conclusion. The retailer has also faced backlash from advocacy groups, particularly regarding its stance on LGBTQ+ inclusion and gender-affirming care policies for employees. A recent executive order from the White House has influenced how companies navigate DEI-related policies, particularly in terms of addressing sexual orientation protections in the workplace.

More Companies With DEI Rollbacks

As executive orders and DEI rollbacks continue to reshape corporate policies, companies are navigating a rapidly evolving landscape with significant implications for their workforce and public image. While some organizations have opted for a gradual phase-out of diversity initiatives, others have taken more immediate and sweeping actions to dismantle long-standing inclusion programs. Below are additional companies that have recently scaled back their DEI commitments:

Lowe’s
Ford
Walmart
Molson Coors
Harley-Davidson
Toyota
Accenture
Boeing
Brown-Forman
BT

Companies Maintaining or Enhancing DEI Commitments

While some large companies are moving away from DEI-related policies, others are reinforcing their commitments to workplace diversity and inclusion efforts.

Apple

Apple CEO Tim Cook has reaffirmed the company’s stance on inclusion initiatives, stating that diversity programs are essential to Apple’s business strategy. Apple shareholders recently rejected a proposal to eliminate DEI training, signaling strong investor support for continued inclusion efforts. Apple’s supplier diversity program remains a key part of its business operations, and the company’s 2020 partnership with Historically Black Colleges and Universities remains in place. Apple’s board has also committed to monitoring global diversity efforts across its international workforce.

Costco

Costco has defended its DEI policies despite rising political debates. The company maintains that its inclusion programs support their business practices and shareholders overwhelmingly agree. Costco’s resilient DEI efforts have proven to create a stream of positivity from their customer base, improving their business reputation and branding. However, they are yet to respond to the latest letter from 19 attorney generals urging them to end “unlawful discrimination imposed by the company through diversity, equity and inclusion (DEI) policies.”

Cisco

Cisco CEO defended the company’s DEI initiatives in the wake of January 2025’s executive orders, citing that “There’s too much business value.” Robbins also noted that “the pendulum swings a little wide in both directions. And for us, it’s about finding the equilibrium … You cannot argue with the fact that a diverse workforce is better. “

Companies Evolving Their DEI Commitments

JPMorgan Chase

JPMorgan Chase CEO Jamie Dimon positioned the company as a leader in maintaining DEI commitments amid growing political scrutiny, insisting that the company has always moved its own way, according to its needs. In January 2025 Dimon had said “We are going to continue to reach out to the Black community, Hispanic community, the LGBT community, the veterans community”. However, the company has now changed the name of its diversity program to DOI, the ‘O’ standing for “opportunity”, some training will be reduced and some programs moved to other departments, such as to HR. HR Dive states that these changes fall in line with legal advice to companies at this time.

Disney

Disney has recently announced updates to its LGBTQ+ support programs, reaffirming its stance on inclusion efforts despite political pushback. The company’s decision to uphold its commitment to gender-affirming care and representation of diverse communities aligns with its broader efforts to cultivate an inclusive environment. While Disney’s commitments have engendered support from shareholders and consumers, FCC chairman, Brendan Carr, has ordered a DEI investigation to “ensure that Disney and ABC have not been violating FCC equal employment opportunity regulations by promoting invidious forms of DEI discrimination.” This is despite efforts to toe-the-line, including changing the organizations performance metric from “Diversity & Incusion” to a “Talent Strategy”, a metric more focused on business outcomes.

Influence of Executive Orders and Political Climate

DEI rollbacks have been influenced by the recent ‘DEI ban’, the overarching name given to the executive orders and policy changes under the Trump administration. President Donald Trump has issued multiple directives restricting DEI training within federal agencies and higher education, and eliminating federal funding for diversity programs. In truth, the legal landscape has been shifting since earlier Supreme Court decisions and federal judge rulings that challenge affirmative action and inclusion initiatives.

Trump’s executive order banning certain DEI-related policies among federal contractors has also had a ripple effect across the private sector. Many large companies that rely on federal grants and contracts, such as John Deere and NYU Langone, have had to reconsider their DEI commitments to comply with new federal guidelines.

It is now apparent that the administration has set its gaze firmly on the private sector, leaving business owners, boards, and consumers questioning how much reach the bans have.

Stakeholder Reactions and Market Impact

Employees

Employees remain one of the most affected groups in the wake of DEI rollbacks. Many have voiced concerns that reducing inclusion programs will create a less equitable workplace, widen disparities in leadership representation, and make it more difficult for underrepresented employees to advance in their careers.

A recent report from MyPerfectResume found that:

84% of employees want DEI efforts to expand.
Only 5% believe DEI should be scaled back.
69% fear that corporate DEI rollbacks will trigger industry-wide cutbacks.
65% say reducing DEI efforts will significantly harm employee retention.
64% believe workplace morale will suffer with DEI cuts.

These findings highlight employees’ deep apprehension regarding dismantling DEI-related policies. Companies that roll back initiatives risk losing key team members who value an inclusive environment. Research indicates that inclusive workplaces tend to foster greater innovation, collaboration, and overall job satisfaction. Employees who feel unsupported due to the elimination of DEI programs may be more likely to seek opportunities at competitors that continue prioritizing diversity efforts.

In response to these concerns, some companies have taken alternative approaches, such as shifting DEI efforts into broader leadership development programs rather than explicitly branding them as diversity initiatives. However, employees argue that the lack of accountability and formalized structures makes these initiatives less effective. Others worry that the loss of inclusion efforts will lead to a decline in mentorship programs and sponsorship opportunities for diverse students and professionals seeking career growth.

Ultimately, companies must weigh the risks of employee dissatisfaction and retention challenges when scaling back their DEI efforts. The private sector’s response to these rollbacks will shape the future of workplace culture in the coming years.

Consumers

Consumer reactions to DEI rollbacks have been mixed, with some groups applauding the changes and others expressing frustration. Companies that reduce or eliminate DEI initiatives risk alienating a growing and influential customer base that prioritizes corporate social responsibility. According to market research, diverse consumers, including Black, Hispanic, LGBTQ+, and women-led households, account for trillions of dollars in annual purchasing power. Businesses that neglect these demographics may face long-term brand erosion and diminished customer loyalty.

For example, Target faced backlash when the Twin Cities Pride Festival excluded it from participation due to its scaled-back DEI policies. This exclusion signals a broader shift where advocacy groups and consumers are holding companies accountable for their DEI commitments. Meanwhile, brands that continue prioritizing inclusive efforts, such as Costco and Apple, have seen strong consumer support, reinforcing the business value of maintaining representation and engagement with diverse communities.

Additionally, research shows that younger generations, particularly Gen Z and Millennials, are more likely to make purchasing decisions based on a company’s values, including its commitment to diversity and inclusion. Companies that scale back their DEI programs risk losing market share among these demographics, who view representation and inclusion as integral to their brand loyalty.

Ultimately, businesses that fail to acknowledge and cater to a diverse consumer base may struggle with long-term growth, while those that uphold inclusive initiatives stand to benefit from increased brand trust and customer retention.

Investors

Major investors, including those from Wall Street banks and ESG-focused funds, have expressed concerns over DEI rollbacks. Some investors argue that reducing diversity programs poses an ESG risk and could negatively impact long-term financial performance. Apple shareholders, for example, overwhelmingly rejected anti-DEI proposals, indicating continued investor interest in inclusive corporate strategies.

State investment is also playing a role in shaping corporate DEI policies. Several state pension funds and government investment programs have taken an active stance on corporate diversity commitments, using their financial leverage to influence boardroom decisions. States such as California and New York have continued to advocate for DEI metrics in their investment portfolios, while other states have sought to divest from companies that actively promote diversity programs. These conflicting approaches highlight the growing debate over whether DEI efforts contribute to long-term financial success or represent an unnecessary expenditure.

Additionally, businesses that rely on state contracts and federal funding must navigate the evolving legal landscape surrounding DEI compliance. Investors closely monitor how these shifts impact corporate strategies, particularly for companies dependent on government partnerships and infrastructure projects. As state and federal policies fluctuate, the role of government investment in shaping corporate DEI initiatives will remain a key consideration for investors.

Legal Challenges

Legal experts predict that policy changes surrounding DEI will lead to ongoing debate in the courtroom. A February 21 judge order halted the enforcement of the executive orders, agreeing that the terms were vague and companies were justifiably struggling to understand what constituted ‘illegal DEI’. However, this order was lifted on March 14. Federal agencies, including the Attorney General’s office, are monitoring how large companies handle policy shifts to ensure compliance with anti-discrimination laws; at the same time, companies still grapple with the definitions of terms such as ‘illegal DEI’ and ‘invidious forms of DEI’.

Why I Wrote This

The landscape of corporate DEI initiatives is shifting rapidly, and businesses need to understand how these changes impact their brand, workforce, and consumer trust. Organizations are reassessing their DEI commitments in an effort to avoid legal action, including many of those that were steadfast in their DEI policies earlier in the year.

Companies that reduce or eliminate DEI efforts risk alienating top talent, diminishing workplace morale, and weakening their overall employer brand.

The Ongig Text Analyzer ensures inclusive language remains a priority in job descriptions and internal communications.

By analyzing inclusive language in job postings and identifying potential bias, Ongig can help businesses maintain a commitment to diversity, even in the face of external pressures, while complying with DEI bans.

Company CEOs like Cisco’s are spearheading a focus on the future of workplace inclusion depending on thoughtful, data-driven strategies, and tools like Ongig help companies stay ahead of the curve while fostering an inclusive hiring process.

Shout Outs

Meta announces end of DEI programs. Read the internal memo by Salvador Rodriguez
Reimagining DEI: Lifting vs Leveling the Playing Field Without Legal Pitfalls by Lindsey Siegel
Amazon’s DEI Rollback: The Impact, Employee Reactions, and What’s Next by Diverstiy.com
McDonald’s sued over Latino scholarships after backing off some DEI practices by Kate Gibson
Executive Orders Target DEI Programs and Gender Protections by Sharon Perley Masling, Michelle Selvin Silverman, and Mary Grace Parsons
Apple shareholders vote to keep its diversity policies by Stephen Nellis
Apple teams up with HBCUs to bring coding and creativity opportunities to communities across the US by Apple
Costco Doubled Down On DEI, Then 19 Attorneys General Warned Them To Stop by Doug Melville
Cisco CEO Chuck Robbins defends DEI at his company by Dan Primack
While Trump’s anti-DEI executive orders pile up, JPMorgan Chase CEO doesn’t flinch by Caroline Colvin
JP Mogan trades DEI for ‘DOI’ by Caroline Colvin
Disney Shareholders Overwhelmingly Reject Proposal to Sever Ties With LGBTQ Rights Group at Annual Meeting by Todd Spangler
FCC chairman orders DEI investigation into Disney, ABC by Kelcee Griffis and Bloomberg
U.S. Supreme Court Ends Affirmative Action in Higher Education: An Overview and Practical Next Steps for Employers by Sidley
Target facing backlash from LGBT groups after scaling down DEI practices By Breck Dumas
The Backlash on DEI Programs: Risks of Ignoring Double Materiality by Eric Darrisaw
Federal Court Halts Enforcement of DEI Executive Orders: What Employers Need to Know + 5 Steps to Take Next by Fisher Phillips

April 1, 2025 by Sarah Akida in Diversity and Inclusion