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Corporate DEI in Crisis? Walmart, Amazon, and Other Giants Scaling Back Diversity Efforts

Employers| Job Seekers
March 03, 2025•7 min read

The Decline of Corporate DEI Commitments

Diversity, Equity, and Inclusion (DEI) programs in major corporations are under significant pressure as companies like Walmart, Amazon, Google, McDonald’s, Ford, Meta, and Goldman Sachs scale back their diversity initiatives.

Over the last year, DEI strategies have faced growing legal challenges, investor scrutiny, and shifting political dynamics, leading to widespread cutbacks across multiple industries.

With Fortune 500 companies reversing their DEI efforts, this raises critical questions: What’s driving these decisions? Are companies facing financial losses due to DEI commitments? And how will corporate hiring change in the post-DEI era?

What’s Causing Mass Corporate DEI Rollbacks?

Corporate DEI programs have historically aimed to create more inclusive workplaces, but in 2025, a growing number of companies are rolling back these initiatives due to external pressures. Several key factors are driving this shift:

1. Legal Risks and Supreme Court Rulings

  • The 2023 Supreme Court ruling on affirmative action in higher education has led to lawsuits challenging corporate DEI policies, particularly in hiring and promotion decisions (Reuters, 2025).

  • Major companies are now reassessing DEI programs to ensure compliance with new legal frameworks and avoid potential litigation.

  • Goldman Sachs and McDonald’s are among the firms facing legal scrutiny over DEI-driven hiring practices (CNBC, 2025).

2. Political and Investor Pushback

  • Corporate DEI has become a hot-button political issue, with policymakers questioning whether these programs create discriminatory hiring practices.

  • Conservative investors and shareholder groups have urged corporations to abandon DEI initiatives, arguing that they do not align with financial priorities.

  • Amazon and Ford have quietly scaled back DEI programs after facing pressure from activist investors who claimed diversity spending was not delivering measurable returns ([Forbes, 2025]).

3. Financial Concerns and Profitability Pressure

  • In uncertain economic times, corporations are cutting costs, and DEI departments are among the first to be downsized.

  • Walmart has restructured its DEI division, eliminating several key leadership roles, citing the need to focus on "core business strategies" (The Wall Street Journal, 2025).

  • Meta and Google have also reduced DEI budgets as part of broader cost-cutting efforts following major layoffs in 2024 (Bloomberg, 2025).

Are Companies Experiencing Financial Backlash Like Target?

The impact of corporate DEI cutbacks on brand reputation and consumer loyalty is still unfolding, but some companies have already faced significant financial consequences tied to their DEI policies.

1. Target’s DEI Backlash Led to Stock Declines

  • Target experienced a 12% drop in stock value in late 2024 following widespread criticism of its DEI strategies and product initiatives.

  • Conservative consumer groups called for boycotts, while progressive advocates criticized the company for scaling back its commitments.

  • The mixed response has made other companies hesitant to maintain high-profile DEI programs (MarketWatch, 2025).

2. Walmart and Amazon’s Cautious Approach

  • Unlike Target, Walmart and Amazon have taken a quieter approach to DEI reductions, avoiding major public announcements.

  • Amazon eliminated some internal DEI programs in 2024 but has continued public-facing diversity commitments, balancing investor concerns with brand reputation (CNBC, 2025).

  • Walmart reduced DEI leadership positions but has maintained supplier diversity initiatives to sustain relationships with key stakeholders (Forbes, 2025).

3. Google and Meta Face Employee Pushback

  • Employees at Google and Meta have voiced concerns over the rollback of DEI programs, arguing that diversity hiring efforts helped build a more inclusive workforce.

  • Despite employee resistance, tech firms have focused more on cost-cutting measures, leading to the elimination of non-revenue-generating roles, including DEI leadership (Bloomberg, 2025).

How Will Corporate Hiring Change Post-DEI Cutbacks?

With companies scaling back DEI, there are growing concerns over how hiring and promotion practices will evolve.

1. A Shift Away from DEI-Labeled Programs

  • Companies may still prioritize diversity efforts but without branding them as DEI initiatives to avoid controversy.

  • Internal mentorship and sponsorship programs may replace structured DEI hiring quotas.

  • Walmart and Ford have refocused their hiring strategies on "merit-based initiatives," signaling a shift toward more general workforce programs (The Wall Street Journal, 2025).

2. Diversity Hiring Targets Quietly Disappearing

  • Some companies have stopped publishing diversity hiring goals in annual reports to minimize legal and shareholder scrutiny.

  • Amazon and Goldman Sachs have removed diversity targets from their corporate governance disclosures (CNBC, 2025).

  • Critics argue that this will reduce accountability and slow progress toward workplace inclusivity.

3. AI-Driven Hiring May Reinforce Biases

  • With DEI teams shrinking, more companies are relying on AI-powered hiring tools, which have faced scrutiny for unintentional bias.

  • HR leaders warn that AI-driven recruitment may disadvantage diverse candidates unless properly monitored and adjusted (Washington Post, 2025).

Conclusion: The Future of DEI in Corporate America

As major corporations scale back DEI programs, the long-term impact on workforce diversity, employee engagement, and corporate reputation remains uncertain.

While companies cite legal, financial, and investor-driven concerns as the primary reasons for rolling back diversity initiatives, some critics argue that these cutbacks could undo years of progress toward workplace inclusivity.

Corporate America is now facing a critical turning point: Will companies find alternative ways to support diversity initiatives, or will DEI become a relic of the past?

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Related Articles

Sources & References:

Corporate DEI rollback2025
Walmart Amazon DEI changesDEI backlash big companiesCompanies cutting DEI programsFortune 500 DEI reductionsDEI hiring changes 2025Investor pressure on DEIHow corporate hiring is changing post-DEI
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2025 DEI Workplace Report: Critical Insights on the Future of Inclusive Workplaces

DEI is at a crossroads.

Political shifts, legal challenges, and economic uncertainty are forcing businesses to rethink their inclusion efforts.

Where do employers stand today, and what’s next for DEI?

✔ See what’s changing in DEI hiring and retention and how top companies are responding.

✔ Uncover the biggest risks of scaling back DEI and what it means for your workforce.

✔ Get expert-backed strategies to build an inclusive workplace that drives real business results.

2025 DEI Workplace Report: Critical Insights on the Future of Inclusive Workplaces

DEI is at a crossroads.

Political shifts, legal challenges, and economic uncertainty are forcing businesses to rethink their inclusion efforts.

Where do employers stand today, and what’s next for DEI?

✔ See what’s changing in DEI hiring and retention and how top companies are responding.

✔ Uncover the biggest risks of scaling back DEI and what it means for your workforce.

✔ Get expert-backed strategies to build an inclusive workplace that drives real business results.

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