Corporate America is backing away from diversity, equity, and inclusion (DEI) programs. Legal challenges, political scrutiny, and cost-cutting have pushed companies to quietly roll back initiatives once championed as essential.
PepsiCo Drops Diversity Hiring Targets
PepsiCo is the latest to scale back, scrapping diversity hiring goals and supplier diversity commitments. The company is shifting to an “Inclusion for Growth” model, folding DEI efforts into leadership development. It will also stop reporting on workforce demographics by single categories. The move signals a retreat from previous commitments amid shifting corporate priorities.
Wall Street’s Quiet DEI Pullback
Major banks are making similar moves. Citigroup has eliminated hiring goals tied to race and gender, rebranding its DEI division as “Talent Management and Engagement.” JPMorgan, Goldman Sachs, and Bank of America have cut back on diversity-focused hiring programs. Executives cite economic concerns and legal risks as reasons for the shift.
Coca-Cola Holds Its Ground
Unlike others, Coca-Cola is staying the course, maintaining leadership diversity targets and supplier diversity goals. The company insists DEI remains a core priority despite mounting political and legal challenges.
Legal and Political Pressure Reshaping DEI
- Affirmative Action Ruling: The Supreme Court’s decision striking down race-based college admissions has fueled legal challenges to corporate DEI policies.
- State-Level Bans: Republican-led states are cracking down on race-based hiring, forcing companies to reconsider diversity policies.
- Economic Pressures: With layoffs and budget cuts, companies are reassessing DEI spending.
The DEI Era Is Changing
Public commitments to DEI are giving way to quieter, risk-averse strategies. Companies that once led diversity efforts are scaling back, while a few, like Coca-Cola, are holding firm. The corporate DEI landscape isn’t disappearing, but it’s shifting—fast.
