DEI in 2025: Companies Cutting Back vs. Those Standing Firm (March Update)

March 02, 2025•7 min read

Diversity, Equity, and Inclusion (DEI) initiatives have been at the center of corporate strategy discussions for years, but 2025 is proving to be a turning point.

Some companies are stepping back from DEI commitments, citing political pressures, shareholder concerns, and legal risks. Others are standing firm, emphasizing the importance of diversity in business success and employee engagement.

The corporate divide on DEI is growing, and its impact on businesses and their reputations is becoming clearer.

This article provides an updated overview of which major corporations are scaling back DEI programs and which are reinforcing their commitments, along with legal and financial implications.

Companies Cutting Back DEI in 2025

Several high-profile companies have recently reduced or eliminated DEI initiatives, often in response to external pressures.

Target
Target has cut funding for its DEI programs and has ceased tracking diversity metrics.
The company has also discontinued efforts to increase representation in its product lines from minority-owned businesses.
Consumer boycotts and investor concerns have contributed to these changes ([Reuters, 2025]).
In February 2025, Target’s stock price experienced a slight dip, though analysts are divided on whether it is directly tied to the DEI rollback (Bloomberg, 2025).
Disney
Disney has phased out its "Reimagine Tomorrow" initiative, which aimed to highlight diverse talent and stories.
The company also removed DEI-related performance metrics from executive evaluations (Forbes, 2025).
Disney’s decision aligns with an industry-wide reassessment of DEI efforts, particularly in media and entertainment.
Paramount Global
Paramount has dropped its racial and gender hiring targets, making diversity an optional rather than required component of hiring decisions.
DEI-focused leadership positions within the company have also been eliminated (Business Insider, 2025).
Goldman Sachs
The financial giant has pulled back from its aggressive DEI hiring programs. Investor pressure to focus on profitability over social initiatives has played a role in this shift (Quartz, 2025).
PepsiCo
The company has reduced its commitments to supplier diversity and has scaled back its DEI reporting processes.
While not making a public announcement, internal changes have been observed (Axios, 2025).
Citigroup
Citigroup has withdrawn from certain external DEI reporting programs, adjusting its strategy to align with federal policies and regulatory concerns (CNBC, 2025).
State Street
The financial services firm has removed its board diversity requirements, citing regulatory challenges and investor expectations (Business Insider, 2025).

Companies Standing Firm on DEI in 2025

While some corporations are scaling back, others remain committed to their DEI efforts.

Apple
Apple shareholders recently rejected proposals to scale back diversity initiatives, reinforcing the company’s stance on inclusive hiring and workplace policies (Time, 2025).
Apple executives continue to emphasize that DEI is a key component of long-term business growth.
Costco
The retail giant continues to support its DEI programs, maintaining supplier diversity initiatives and inclusive workplace policies (Axios, 2025).
JPMorgan Chase
JPMorgan Chase remains committed to increasing diversity in leadership roles. Executives have reiterated that DEI is part of their long-term strategy for business growth (Bloomberg, 2025).
Ben & Jerry’s
The company continues to be vocal in its support for DEI, backing social justice initiatives and maintaining inclusive hiring practices (Business Insider, 2025).
Deutsche Bank
Despite growing external pressures, Deutsche Bank has affirmed its commitment to DEI programs, expanding initiatives focused on leadership diversity (Reuters, 2025).
National Football League (NFL)
The NFL continues its DEI hiring programs and diversity-focused scholarships, reinforcing its long-standing commitment to inclusivity in sports leadership (CNBC, 2025).

Legal and Financial Implications of DEI Rollbacks

Companies scaling back DEI efforts may face legal scrutiny. Some organizations have already been named in lawsuits citing discrimination concerns after reducing DEI policies (Fortune, 2025).

Additionally, new state-level restrictions on DEI programs have forced companies to reassess their compliance strategies.

From a financial perspective, DEI reductions can have mixed effects.

Some companies, like Target and Disney, have seen temporary declines in stock prices following backlash, while others have gained investor support for focusing on profit-driven strategies.

Long-term impacts remain uncertain as consumer expectations and regulatory landscapes continue to evolve.

What’s Next for DEI in Corporate America?

The future of DEI will likely involve companies making more strategic, less public-facing adjustments.

Some may continue diversity efforts under different branding, while others wait for the political climate to shift before reinvesting in DEI.

Workforce diversity and inclusion may still play a role in hiring and retention strategies, even if explicitly labeled DEI programs become less common.

Conclusion: The Corporate DEI Divide

While some organizations are cutting back on diversity initiatives, others are reinforcing their commitment to inclusion.

The choices companies make now will shape their reputations, workforce composition, and market positioning in the years to come.

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If you have any questions or need assistance, feel free to Contact Us Here. Our dedicated support team is ready to help!

Sources & References:

Axios. (2025, March 3). Pepsi quietly reduces DEI commitments. Retrieved from: https://www.axios.com
Axios. (2025, March 1). Costco reaffirms DEI as part of corporate culture. Retrieved from: https://www.axios.com
Bloomberg. (2025, February 28). Target stock dips following DEI rollback announcement. Retrieved from: https://www.bloomberg.com
Business Insider. (2025, March 1). Paramount drops diversity hiring requirements as part of corporate restructuring. Retrieved from: https://www.businessinsider.com
Business Insider. (2025, February 29). Ben & Jerry’s remains one of the most vocal DEI supporters in corporate America. Retrieved from: https://www.businessinsider.com
CNBC. (2025, March 2). Citigroup adjusts DEI strategy in response to federal policies. Retrieved from: https://www.cnbc.com
CNBC. (2025, March 1). NFL continues DEI hiring initiatives despite external pressures. Retrieved from: https://www.cnbc.com
Fortune. (2025, February 29). Legal scrutiny grows as companies roll back DEI policies. Retrieved from: https://www.fortune.com
Forbes. (2025, February 27). Disney removes DEI metrics from executive evaluations. Retrieved from: https://www.forbes.com
Quartz. (2025, March 1). Goldman Sachs scales back DEI programs amid investor pushback. Retrieved from: https://www.qz.com
Reuters. (2025, March 3). Target cuts DEI funding, ceases tracking diversity metrics. Retrieved from: https://www.reuters.com
Reuters. (2025, February 28). Deutsche Bank reaffirms commitment to DEI despite global rollbacks. Retrieved from: https://www.reuters.com
Time. (2025, March 1). Apple shareholders vote to uphold diversity initiatives. Retrieved from: https://www.time.com
Time. (2025, March 3). US companies scaling back DEI efforts amid political shifts. Retrieved from: https://www.time.com
Business Insider. (2025, March 2). State Street removes board diversity requirements due to regulatory concerns. Retrieved from: https://www.businessinsider.com