President Trump also issued an executive order on his first day back in the White House terminating DEI programs in the federal government.
In recent months, a notable shift has occurred in the corporate landscape as several major companies have begun scaling back or entirely discontinuing their Diversity, Equity, and Inclusion (DEI) programs. This trend aligns with broader political movements, including actions taken by the federal government to reevaluate DEI initiatives.
On January 20, 2025, President Donald Trump signed an executive order mandating the termination of DEI programs within the federal government. This order requires all federal agencies to dismantle DEI offices and roles within 60 days, emphasizing a return to employment practices based solely on individual merit. The directive also includes a review of federal programs that may favor specific demographics, with the potential for their elimination.
Even before Trump was sworn in and issued his executive order, several corporations began adjusting their DEI strategies in response to the changing political climate.
Companies Scaling Back DEI Initiatives
- Meta – The parent company of Facebook and Instagram announced the discontinuation of its DEI programs, including those related to hiring, training, and supplier selection. This decision was communicated through an internal memo citing the evolving legal and policy landscape surrounding DEI efforts in the United States.
- Amazon – In December 2024, Amazon declared it was “winding down outdated programs and materials” related to DEI after a comprehensive review. The company emphasized a focus on programs with proven outcomes to foster a more inclusive culture.
- Walmart – The retail giant faced a backlash after announcing a rollback of its DEI programs. This included not renewing a five-year commitment to its Center for Racial Equity and discontinuing the use of terms like “LatinX” and “DEI” in official communications.
- Ford – The automaker joined the list of companies scaling back DEI initiatives last August, though specific details of the rollback were not extensively publicized.
- Harley-Davidson and John Deere – Both companies have also reduced their DEI commitments, reflecting a broader trend among major corporations reassessing such programs.
The rollback of DEI initiatives has elicited varied responses. Conservative groups have largely supported these decisions, viewing them as a move away from “woke” policies. Conversely, shareholders and Democratic officials have expressed concerns. For instance, over 30 shareholders representing $266 billion in assets criticized Walmart’s decision, citing potential negative business impacts and a lack of financial rationale. Additionally, 13 Democratic state attorneys general urged Walmart to reconsider, emphasizing the importance of DEI for employee and customer relations and civil rights.
