Several U.S. companies began scaling back or changing their Diversity, Equity and Inclusion (DEI) initiatives in recent months, a trend that has intensified following President Donald Trump's executive order dismantling federal DEI programs.
For some businesses, the rollback on DEI policies was tied to the U.S. Supreme Court decision in June 2023, which ended affirmative action in college admissions. Other companies received pushback from some conservative customers, both in-person and online.
What Is DEI?
Diversity, Equity and Inclusion (DEI) initiatives are created to promote fair treatment and full participation of all individuals, particularly those from historically underrepresented or marginalized groups.
Such initiatives build upon the action taken by former President Lyndon B. Johnson when he issued Executive Order 11246 in 1965, which required government contractors to "take affirmative action to ensure that applicants are employed, and employees are treated [fairly] during employment, without regard to their race, creed, color, or national origin."
Which Companies Have Modified DEI Initiatives?
Meta Platforms Inc.
The parent company of Facebook and Instagram announced it was getting rid of certain DEI programs earlier this month. The move included diversity programs related to hiring, training and picking suppliers.
Janelle Gale, vice president of human resources at Meta, told CBS News that the "legal and policy landscape surrounding diversity, equity and inclusion efforts in the United States is changing," which prompted the pivot.
McDonald's
The fast-food giant, which rolled out diversity initiatives in 2021, revised its DEI protocols last year, discontinuing specific diversity goals and rebranding its diversity team.
McDonald's retired certain goals tied to achieving diversity at senior leadership levels, per The Associated Press. The company also ended a program that motivated suppliers to craft diversity training.
Walmart
Walmart, the nation's largest retailer, also rolled back its diversity, equity and inclusion policies earlier this year. These changes included, but were not limited to:
- No longer considering race and gender when awarding supplier contracts.
- Not renewing a five-year commitment to an equity racial center, set up in 2020 after the police murder of George Floyd.
Walmart, which employs 1.6 million workers in the U.S., faced backlash from some investors after announcing the change to its DEI programs.
Over 30 shareholders, representing more than $266 billion in assets, expressed their discontent in a letter to Walmart's CEO Doug McMillon. The letter stated: "Seeing the company retreat from its stated values and the business opportunities associated with a diverse and inclusive workforce is very disheartening."
Amazon
Earlier this month, Amazon announced they were altering their approach to DEI in an internal announcement, as first reported by Bloomberg.
A statement from Candi Castleberry, Amazon's VP of inclusive experiences and technology, said: "As part of this evolution, we've been winding down outdated programs and materials, and we're aiming to complete that by the end of 2024."
American Airlines
The airline giant abandoned its DEI hiring practices in December 2024. It came after Conservative group American First Legal (AFL) took legal action against American, Southwest Airlines and United Airlines.
AFL's complaint, filed in January, alleged that American Airlines prioritized race and gender over merit in hiring and promotions.
Starbucks
Starbucks has not removed DEI policies, but changes have been made in the past year.
At Starbucks' annual shareholders' meeting in March 2024, investors voted to remove diversity and sustainability goals from executive bonus considerations. Previously, 7.5 percent of executive bonuses were tied to diversity objectives, but the new compensation structure focuses solely on financial and individual performance metrics.
Tractor Supply Co.
In June 2024, Tractor Supply Company announced that it was ending its diversity, equity, and inclusion programs and climate goals after the retailer was hit with conservative backlash from some conservative customers online and in-person.
John Deere
In July 2024, the company announced it would no longer sponsor "social or cultural awareness" events.
Lowe's
The home improvement retailer scaled back its DEI initiatives in August 2024.
Conservative influencer Robby Starbuck, who has pushed anti-DEI rhetoric online, claimed responsibility for the company's change of direction.
What Does Donald Trump's Executive Order On DEI Say?
On January 21, 2025, Trump signed an executive order effectively ending DEI programs in the federal government.
The order directed all federal agencies to place DEI staff on paid administrative leave and dismantle their departments. It further mandated that all DEI initiatives, contracts and websites be removed.
Doing away with DEI was part of Trump's campaign. In his inaugural address, Trump said he would strive to "forge a society that is colorblind and merit-based."
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