Tech DEI Divide: Companies That Support DEI and Those Scaling Back

In 2020, following the murder of George Floyd, corporate America made sweeping promises to address racial inequities, pledging billions of dollars toward Diversity, Equity, and Inclusion (DEI) initiatives.

These programs aimed to build more inclusive workplaces, reflective of the diverse society in which they operate. While many companies embraced this change, establishing bold DEI goals, others have since scaled back. In 2025, a visible divide has emerged between companies that support DEI and those pulling away amid political and legal headwinds.

Let’s explore how tech firms are responding to renewed political scrutiny — examining the companies that support DEI and those now rethinking their approach. From cutbacks to renewed commitments, the response paints a fragmented picture of corporate values in 2025.

Corporate America caught in the crossfire: Trump’s executive orders challenge DEI commitments

Just hours into his second term, President Donald Trump moved swiftly to dismantle DEI frameworks across federal agencies — signaling a broader shift in national tone. Trump sent a clear message to corporate America: “Follow the federal government’s lead and end illegal DEI discrimination or face civil rights investigations”. He even directed federal agencies to draw up lists of private companies that could be investigated for their DEI policies. The Trump administration argues that DEI programs are counterproductive and discriminatory.

In a statement at the White House, he even labeled these initiatives an “immense public waste” and claimed they created “shameful discrimination” in hiring practices. In all, Trump advocates for a return to ‘merit-based hiring’, suggesting that opportunities should be granted solely on qualifications and performance rather than factors like race, gender, or identity.

This growing divide within corporate America is now most visible among tech companies. Some firms have dialed back their commitments, laying off DEI teams, cutting diversity-focused budgets, or removing diversity metrics from performance goals. In contrast, others are standing by their DEI strategies, viewing them as critical to employee wellbeing, innovation, and long-term business success.

As the debate intensifies, it’s worth revisiting what DEI actually stands for — and why it’s become so divisive?

Understanding DEI: What it means and why it’s contested

DEI stands for Diversity, Equity, and Inclusion. It refers to practices and policies intended to support people from varying backgrounds and give them the resources they need to thrive in the workplace.

DEI frameworks consider factors like race, gender, and sexual orientation – to help employees from marginalized groups succeed. DEI is vital for creating and maintaining a successful workplace – founded on the principle that everyone can thrive personally and professionally.

More importantly, a DEI strategy contributes to a space where all employees feel they have intrinsic worth, not in spite of their differences but because of their differences.

Critics see diversity initiatives differently

Critics see DEI differently. They say DEI focuses on race and gender at the expense of individual merit and they have challenged these initiatives in courtrooms and on social media as illegal discrimination – so called ‘reverse discrimination’ – against white people.

With Trump fueling the backlash, tensions are running high in a nation already polarized over DEI. A delicate balance is playing out at corporations across America.

Companies that support DEI — and those scaling back

As the Trump administration targets diversity, equity and inclusion initiatives, many prominent companies have publicly scaled back or scrapped their DEI programs and goals. While others have insisted, they will continue to support DEI strategies, despite conflicts.

In the section below, let’s find the list of tech companies scaling back and the ones standing by DEI program.

Companies that are scaling back DEI initiatives

The list of companies that are not supporting DEI is long. However, we have listed a few prominent ones for your reference.

• Meta (formerly Facebook)

Facebook recently announced eliminating its DEI programs, signaling a significant policy shift and growing criticism from conservative groups.

According to a company-wide memo from Meta’s VP of Human Resources, Janelle Gale –  “Meta’s Chief Diversity Officer, Maxine Williams, will transition to a new role focused on accessibility and engagement. The company will also no longer require managers to source candidates from unrepresented groups and will end efforts to hire minority-owned vendors and suppliers”.

Gale wrote, “Instead of equity and inclusion programs, Meta plans to build programs that focus on how to apply fair and consistent practices that mitigate bias for all, no matter your background.”

• McDonald’s

McDonald’s is next in line for companies retracting their commitments in the DEI space. In a statement, the company said it is sunsetting its specific diversity goals, including requiring its suppliers to commit to certain DEI targets. And it will stop participating in external surveys that measure corporate diversity.

McDonald’s is also changing the name of its diverse team to the Global Inclusion Team. “This name change is more fitting for McDonald in light of our inclusion value and better aligns with this team’s work,” McDonald’s said in the statement.

• Walmart

Walmart, the largest private employer in the United States, plans to curb its DEI efforts due to pressure from conservative influencers and amid Donald Trump’s anti-woke return to power. The retail giant confirmed that it will no longer use the acronym “DEI” in company communications.

The retailer announced that it is discontinuing practices such as prioritizing suppliers based on race and gender. It is even halting the ‘racial equity training’ for employees and withdrawing from the LGBTQ rights group Human Rights Campaign’s Corporate Equality Index.

Walmart also said it would not extend its ‘Center for Racial Equity,’ a five-year, $100 million philanthropic commitment the company made in 2020 to address the root causes of gaps in outcomes of African Americans in education, health, criminal justice, and other areas.

The company is also reviewing all funding of Pride and other events and monitoring its online marketplace to remove sexual or transgender products marketed to children.

• Lowe’s

Lowe’s (LOW), a recognized home improvement retailer in the US, has confirmed that it’s scaling back some of its DEI strategies.

In an internal memo shared by Lowe’s, the company claims that it will no longer participate in an annual survey by the Human Rights Campaign that measures workplace inclusion for LGBTQ+ employees, and will also stop sponsoring and participating in events, such as festivals and parades, that are outside of its business areas.

The memo emphasized that these changes were made to ensure Lowe’s policies remain ‘lawful’ and aligned with its commitment to ‘include everyone.’

• Harley-Davidson

Harley Davidson is among the growing number of prominent companies to scale back or set aside the diversity, equity, and inclusion initiatives.

In a statement released on social media platform X, the iconic motorcycle company revealed it would discontinue consulting the Human Rights Campaign’s (HRC) metric for LGBTQ+ employee treatment. The company also claimed that its future sponsorship decisions will now focus on engaging its core riding community rather than broader DEI considerations.

• Ford

Ford joins the list of companies scaling back their DEI commitments. The US car manufacturer claims it is altering its approaches amid a changing legal and political environment and online pressure from the right.

As part of this shift, the automaker will not participate in an annual survey from an LGBTQ advocacy group and will discontinue the use of quotas for minority dealerships and suppliers.

Ford also claims that it will no longer engage with the Human Rights Campaign’s Corporate Equality Index and various “best places to work” lists/surveys, and that it will revise its employee resource groups and open them to all its workers.

• Target

Target Corporation announced the termination for its DEI program. In a memo sent to its employees, the Minneapolis-based retailer said it will end its three-year DEI goals, stop reports to external diversity-focused groups like the Human Rights Campaign’s Corporate Equality Index and end a program focused on carrying more products from Black- or minority-owned businesses. The memo was reviewed and written by Kiera Fernandez, chief community impact and equity officer at Target.

The memo states that, “As a retailer that serves millions of consumers every day, we understand the importance of staying in step with the evolving external landscape, now and in the future – all in service of driving Target’s growth and winning together.”

• Disney

Disney pulls back its DEI program amid political pressure. In a note to employees, Chief Human Resources Officer Sonia Coleman outlined ways Disney’s DEI efforts will change.

> Disney will replace the “Diversity & Inclusion” performance factor that it used to evaluate executive compensation with a new factor, “Talent Strategy.” The new strategy will be more focused on how values drive business success.

> Disney is eliminating its controversial ‘Reimagine Tomorrow’ initiative and the corresponding website, which usually highlights stories and talent from underrepresented communities. 

> The company has rebranded its “Business” Employee Resource Groups (BERGs) to “Belonging” Employee Resource Groups. The transformation aims to strengthen the employee community and workplace experience.

List of companies supporting DEI

As corporate diversity and inclusion programs come under attack, not all companies have scaled back. Here is a list of prominent companies supporting DEI strategies, amidst the backslash.

• Apple

Apple reaffirmed its commitment to DEI by urging shareholders to vote against proposals that sought to dismantle such programs. The company emphasized that fostering a “culture of belonging” is critical to innovation and success.

Apple, in its proxy statement (a document sent to shareholders ahead of the annual meeting), states, “the proposal is unnecessary as Apple already has a well-established compliance program, and the proposal inappropriately attempts to restrict Apple’s ability to manage its own ordinary business operations, people and teams, and business strategies”.

According to the proxy statement, Apple argues that the proposal from the conservative think tank “inappropriately seeks to micromanage the Company’s programs and policies by suggesting a specific means of legal compliance. “

• Microsoft

Microsoft echoed Apple’s stance, with Chief Diversity Officer Lindsay-Rae McIntyre reaffirming the company’s DEI commitment. She highlighted the business case for diversity, stating that inclusivity helps Microsoft build better products and services for a global audience. The company’s latest diversity report, released in October, further underscores these efforts.

“By actively seeking diversity and embracing inclusion, we ensure our workforce represents the planet we serve, and that the products we build always meet our customers’ needs,” CEO Satya Nadella wrote in the company’s October 2024 D&I report.

• Costco

Costco is one of those several large companies that are publicly maintaining D.E.I. efforts despite the mounting pressure.

In mid-January, the company’s shareholders overwhelmingly voted against a proposal urging the wholesale club to evaluate risks posed by its diversity, equity, and inclusion measures. Costco’s board of directors unanimously advised shareholders to vote against the measure, stating that “our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary”.

In a statement, Costco said, “We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed. This capacity is critical because we owe our success to all our employees around the globe. 

We welcome members from all walks of life and backgrounds. As our membership diversifies, we believe that serving it with a diverse group of employees enhances satisfaction”.

• Delta Air Lines

Despite President Trump’s efforts to dismantle DEI programs, Delta Air Lines has publicly reaffirmed its commitment to DEI initiatives, stating they are ‘critical to our business’.

“We are steadfast in our commitments because we think that they are actually critical to our business,” said Peter Carter, Chief External Affairs Officer at Delta Air Lines. “Sustainability is about being more efficient in our operations and really DE&I is about talent and that’s been our focus.” That statement from Delta’s Chief External Affairs Officer came during the airline’s 4th quarter earnings call last month.

• Cisco

Under CEO Chuck Robbins, Cisco has doubled down on its commitment to DEI, emphasizing that equity and inclusion are critical to both employee well-being and business success.

In an interview lately, Cisco Chuck Robbins said “I think the pendulum swings a little wide in both directions. And for us, it’s about finding the equilibrium…You cannot argue with the fact that a diverse workforce is better. There’s too much business value,” 

• Ben & Jerry’s

Ice cream company Ben & Jerry’s, which haslong been vocal about social activism,said in a statement that it remains committed to supporting equity and justice throughout the company, while also calling out companies that have rolled back DEI commitments.

“We believe that companies that timidly bow to the current political climate by attempting to turn back the clock will become increasingly uncompetitive in the marketplace and will ultimately be judged as having been on the wrong side of history,” the company said in a statement.

• E.l.f. Beauty

Although cosmetics brand E.l.f. Beauty does not have formal DEI programs, it promotes inclusivity in its company culture and has not changed its stance on DEI, CEO Tarang Amin said in his statement to the media. “This isn’t about risks or rewards; it’s about having a diverse set of views to best serve our community with exceptional products they want, at prices they can afford,” Amin says.

DEI challenges in the wake of Trump administration

It’s too soon to determine whether companies currently taking stances on DEI will see an impact on their profit or revenue. However, experts claim there will be a certain business impact, as some consumers will make buying decisions based on the company’s values. In these heated moments, companies will certainly be tested in terms of consumer loyalty.

However, be it any approach, companies need to maintain a delicate balance to avoid making political enemies and to avoid controversy among consumers.

In brief

The debate around Diversity, Equity, and Inclusion is far from over—and in an election year, the corporate world will likely remain a frontline in this cultural and political battle. It has intensified in the US – especially after Donald Trump’s re-election – citing changing market dynamics or skepticism about its effectiveness.

The move has sparked discussions and concerns about the future of workplace diversity and whether these initiatives are merely performative or beneficial for making America a great place to be.