Following recent legal and political developments, Meta and Amazon will reduce their diversity initiatives. This stands in line with a broader shift within US businesses reassessing initiatives under the “DEI umbrella.”
Just this past week, two behemoths announced significant heart changes: Meta said it would shrink its Diversity, Equity, and Inclusion efforts, while Amazon said it was cutting its initiatives. It is part of a larger trend inside the United States: businesses are walking away from DEI projects.
Meta, the parent company of Facebook and Instagram, has discontinued its dedicated diversity team. According to a copy of an internal memo by Vice President of Human Resources Janelle Gale, “the legal and policy landscape surrounding diversity, equity, and inclusion efforts in the United States is changing.” She further reasoned that because the term “DEI” has “become charged,” the company had to reevaluate its approach.
Along these lines, Amazon announced it is scrapping some DEI programs. A company memo defended the retreat on the grounds of a need to ensure compliance with new court rulings and the shifting legal landscape.
After the U.S. Supreme Court judgment in 2023 against affirmative action in college admissions, these judgments have consequences for corporate diversity initiatives. Due to the evolving legal landscape, some corporations have also scaled down their DEI activities, such as Walmart, John Deere, Harley-Davidson, and McDonald’s.
But not all corporations are pulling back on their diversity commitments. Costco, for example, reaffirmed its support for DEI programs by rebuffing shareholder challenges. The board of Apple has recommended that investors vote against a proposal to end the company’s DEI initiatives, stating that the company remains committed to equal opportunity and nondiscrimination.
The rollback of DEI programs has sparked intense debate among the corporate leaders, policymakers, and advocacy groups. Proponents support the idea since these initiatives provide a basis to foster inclusive workplaces and reverse systemic inequalities in the workplace. Critics argue such programs may spur reverse discrimination, and legal hurdles.
As the legal and political environment continues to change, the companies are stuck in the midst of balancing efforts towards diversity, compliance, and risk management. Meta and Amazon’s recent steps appear to be more cautious as well, aligning with broader uncertainty among corporate companies regarding the future of DEI initiatives.
