Have companies given up on DEI?

Photo: Antoni Shkraba | Pexels

The future of diversity, equity, and inclusion (DEI) remains complex, particularly amid recent backlash and shifting U.S. policy positions. DEI includes various initiatives aimed at fostering workplaces that celebrate diverse identities and perspectives. However, the current environment threatens to widen the equity gap and reinforce systemic barriers hindering workplace progress for women and other employees.

A recent survey by resume.org found that 1 in 8 companies plan to cut or reduce DEI programs in 2025, largely due to shifts in the political climate. Additionally, 40% of companies intend to reallocate DEI funds to operations and AI, and 8% of those keeping DEI programs may phase them out within four years.

In 2024, companies like Disney and Goldman Sachs began scaling back DEI programs due to budget constraints and changing priorities. By 2025, many prominent U.S. companies further reduced or eliminated these initiatives. Target: Reduced DEI initiatives, igniting employee debates about diversity impacts. Coca-Cola: Suspended DEI programs to realign post-pandemic, facing criticism from minority groups. General Motors (GM): Cut DEI efforts significantly as part of a restructuring plan, raising concerns about future diversity in leadership roles.

European firms such as Deutsche Bank and Volkswagen shifted their focus from diversity budgets to immediate recovery efforts and core business objectives, while BP cut diversity spending in response to fluctuating energy markets.

In Australia, major banks like Commonwealth Bank and ANZ scaled back diversity training to prioritize operational efficiency. Woolworths faced scrutiny for reducing DEI initiatives during restructuring, and AGL shifted its diversity focus toward financial sustainability. James Hardie Industries also retracted some DEI efforts amid financial adjustments.

Asian companies are experiencing similar trends. Major tech firms in Japan, like Sony, have paused certain DEI programs to redirect resources toward innovation and technological advancement. These cutbacks are concerning, as they may impede the progress made over recent years, risking significant setbacks in representation and inclusivity on a global scale.

These trends reveal a growing hesitance among major corporations to commit to DEI amid economic pressures and shifting societal attitudes, raising alarms for employees and advocates for meaningful change. The struggle for gender equity for example, rooted in societal norms and institutional practices that have marginalized women over centuries, is ongoing. With organizations scaling back DEI commitments, there is a fear that hard-won gains may be at risk, further entrenching systemic issues.

Addressing these challenges requires collaboration across industries, as stakeholders must recognize that without intentional action, current trends could worsen existing inequalities.

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Reference sources:

1. Resume.org. (2023). "Corporate DEI Programs Survey Findings."

2. Disney. (2024). "Press Release: Updates on Company Initiatives."

3. Goldman Sachs. (2024). "Sustainability and DEI Commitment Overview."

4. Target. (2025). "Annual Diversity Report."

5. Coca-Cola. (2024). "Company Realignment: DEI Program Changes."

6. General Motors. (2024). "Restructuring Plan and DEI Efforts."

7. Deutsche Bank. (2024). "Strategic Updates: Focus on Core Business and DEI Adjustments."

8. Volkswagen. (2023). "Navigating Economic Pressures: Diversity Budgets and Business Focus."

9. BP. (2023). "Corporate Restructuring and Diversity Spending."

10. Commonwealth Bank. (2023). "Annual Report: DEI Training and Operational Efficiency."

11. ANZ. (2023). "Diversity Initiatives Review: Adjustments in Training Focus."

12. Woolworths. (2023). "Corporate Restructuring and DEI Strategy Updates."

13. AGL Energy. (2023). "Prioritizing Financial Sustainability: Shifts in Diversity Efforts."

14. James Hardie Industries. (2023). "Adjustments to DEI Practices Amid Financial Changes."

15. Sony (Japan). (2023). "Rethinking DEI Strategies in Technology Shifts."