Prior to former President Donald Trump’s campaign to dismantle diversity, equity, and inclusion (DEI) programs, many major US companies had already been reducing or abandoning their diversity initiatives, signaling a shift in corporate priorities, according to a review of employment filings and demographic reports.
While Trump’s anti-DEI push, which intensified after he took office in January 2017, was a significant catalyst, several high-profile companies had already begun dialing back their diversity efforts well before his nationwide campaign took shape. Companies like Meta, Walmart, and Target scaled back or eliminated DEI programs aimed at promoting opportunities for underrepresented groups, including women, ethnic minorities, and LGBTQ+ individuals. These programs were initially created to address systemic discrimination and improve workplace equity.
In a January 10 internal memo, Meta acknowledged that the “legal and policy landscape surrounding diversity, equity and inclusion efforts in the United States is changing,” signaling its move away from some of these initiatives. Target, another prominent company, followed suit and rolled back its diversity programs just days later. The trend reflects growing concerns among anti-DEI advocates that such initiatives may give preferential treatment to minority groups, while DEI proponents warn that the cuts could lead to a return to workplace inequities.
Reuters analyzed reports filed with the US Equal Employment Opportunity Commission (EEOC) and other demographic data from nine major companies that had either reduced or discontinued their diversity programs over the past year. These companies, including Meta, Walmart, Amazon, Starbucks, and Boeing, demonstrated mixed progress in their diversity goals, particularly in increasing the representation of women in mid-level management positions.
For example, at Amazon, the percentage of female mid-level managers increased marginally from 29.5% in 2020 to 32% in 2023. Similarly, Deere & Co. saw its proportion of female mid-level managers rise slightly from 27.2% to 28.4%. However, the representation of Hispanic and Black women in these positions remained disproportionately low across all companies, with the average share of mid-level managers being just 5% for each group in 2023.
In contrast, some companies showed a reversal in their diversity efforts. Meta’s proportion of female mid-level officials dropped from 34.4% in 2020 to 29.8% in 2023, while Ford’s dropped from 26.7% in 2021 to 24.8% in 2023. Despite these declines, both companies improved female representation at the executive level, with Meta’s top executive female representation rising slightly to 36.3% and Ford’s to 27.4%.
Experts argue that increasing diversity at the mid-level is crucial for long-term progress, as it serves as the pipeline for leadership roles.
“It’s not enough to just have women on your executive committee. You need them in the right roles to be preparing them,” said Laura Sanderson, Co-Head of Europe, Middle East & India at executive search firm Russell Reynolds Associates.
The broader trend of scaling back diversity programs reflects a larger shift in US corporate culture. Since the global outcry following the 2020 killing of George Floyd, many companies had ramped up their diversity efforts. However, a backlash against such programs has emerged in recent years, particularly following the US Supreme Court’s June 2023 ruling against affirmative action in university admissions, which set off a wave of legal challenges to DEI policies in the workplace.
As corporate interest in diversity begins to wane, data from consulting firm McKinsey shows a decline in the number of companies that prioritize gender diversity—down from 88% in 2017 to 78% last year. According to McKinsey partner Alexis Krivkovich, this marks the first significant step back in corporate diversity efforts, raising concerns about the future of gender equity in the workplace.
Despite these setbacks, some companies, such as Apple and Costco, have continued to defend their diversity initiatives. Apple, for instance, saw a modest increase in female mid-level managers, rising from 28% in 2020 to 29.8% in 2023. Additionally, Costco shareholders recently rejected a proposal to eliminate the company’s DEI programs.
With input from Reuters.
