Economic and Legal Concerns
The corporate world was shifting one year before Donald Trump was sworn in in January 2025. Over the past year, 29 major companies had scaled back or entirely eliminated their Diversity, Equity, and Inclusion (DEI) programmes. While economic concerns and legal challenges are cited as reasons, the political climate—particularly Donald Trump’s influence— played a significant role in reshaping corporate America’s approach to DEI.
Trump’s Influence on DEI Rollbacks
Throughout his political career, Donald Trump has been a vocal critic of DEI initiatives, arguing that they create division and unfair advantages. His first administration actively worked to limit race-conscious policies, and in the post-2020 landscape, conservatives continued to push back against corporate diversity efforts.
With Trump leading the Republican primary and potentially returning to the White House (before Kamala Harris temporarily slowed his momentum), companies were preemptively adjusting their DEI strategies to align with shifting political and legal realities.
The Supreme Court’s 2023 decision striking down affirmative action in college admissions further fuelled the rollback of DEI programmes in the private sector. Some companies feared lawsuits over race-based hiring practices, while others were responding to growing anti-DEI sentiment among customers, employees, and investors.
The 29 Companies Scaling Back DEI
Several high-profile corporations reduced or eliminated DEI-focused roles, restructured programmes, or altered their hiring and promotion policies. The following companies recently cut back their DEI initiatives within the last year:
- JPMorgan Chase
- Goldman Sachs
- Disney
- Deloitte (U.S. branch)
- PBS
- Pepsi
- General Motors (GM)
- Intel
- PayPal
- Chipotle
- Comcast
- Accenture
- Amazon
- Amtrak
- The Smithsonian Institution
- Target
- The FBI
- Meta (Facebook’s parent company)
- McDonald’s
- Walmart
- Boeing
- Molson Coors
- Lowe’s
- Ford Motor Company
- Brown-Forman (Jack Daniel’s manufacturer)
- Harley-Davidson
- John Deere
- Google (listed twice for different DEI rollbacks at different times)
Why Were Companies Scaling Back?
1. Legal and Political Pressure
The fear of litigation drove corporations to rethink race-based hiring and promotion policies. Following the Supreme Court’s decision on affirmative action, some companies worry that their DEI programmes could be targeted next.
2. Economic Concerns and Cost-Cutting
With economic uncertainty and layoffs affecting multiple industries, companies started reducing DEI budgets to focus on core business operations. The tech sector, in particular, saw mass layoffs in DEI departments as part of broader restructuring efforts.
3. Backlash from Employees and Customers
As political divisions over DEI continued to grow, some employees and consumers were pushing back. Companies like Target and Disney faced significant backlash over diversity and inclusion initiatives, prompting a reassessment of their approach.
The Future of DEI in Corporate America
Before 20 January 2025, while DEI programmers are not disappearing entirely, they were evolving. Now, that gradual evolution has received a shove from the back. Many companies were shifting toward broader “inclusion” initiatives that focus on meritocracy, skills-based hiring, and workplace culture rather than race or gender-specific policies. That politeness is gone.
Predictions that if Trump returned to office in 2025, DEI programmes may face further scrutiny and legal challenges have proven to be more than accurate. However, corporate America remains divided—while some companies are retreating from DEI, others are doubling down on diversity initiatives despite the risks.
The United States of America is getting increasingly divided, and this is shaping conversations everywhere across the world. South Africa is planning to retrieve lands taken unfairly by White minorities who disproportionately own the majority of the land. Trump’s narrow DEI interpretation got him to speak, and President Cyril Ramaphosa did not only verbally respond, but is kicking out American businesses. This, coupled with push backs from Canada and other nations, is evident that Trump is reshaping the world in ways he himself had no idea it would.
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