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A diversity, equity, and inclusion (DEI) team leader at Microsoft whose entire team was laid off has emailed thousands of employees describing DEI as “no longer business critical.”
According to a memo viewed by Business Insider, the team lead suggested that Microsoft sees DEI as less valuable than in recent years.
“True systems-change work associated with DEI programs everywhere are no longer business critical or smart as they were in 2020,” the email stated.
According to the memo, Microsoft eliminated the DEI team due to “changing business needs” effective July 1.
In 2020, following the murder of George Floyd and the subsequent Black Lives Matter protests, Microsoft, like many other companies in the US, made new DEI commitments including a pledge to double the number of Black and African-American leaders by 2025.
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But while the email suggests Microsoft is rolling back its investment in DEI, a spokesperson has stated that the company’s commitments “remain unchanged.”
“Our focus on diversity and inclusion is unwavering and we are holding firm on our expectations, prioritizing accountability, and continuing to focus on this work,” they told Business Insider.
The layoffs, however, coupled with the claims from the team lead, do throw up questions as to how much Microsoft currently values the work of its DEI teams, at a time when some employers are cutting down or eliminating DEI teams.
The Tractor Supply Company, for example, recently stated it will “eliminate” all DEI roles and retire its current DEI goals – while still “ensuring a respectful environment.”
Many HR professionals have spoken out against the move from Tractor Supply and from other organizations or institutions rolling back DEI programs.
But according to its own ‘Global Diversity & Inclusion Report 2023,’ diversity and inclusion are “central” to Microsoft’s “audacious mission to empower every person and every organization on the planet to achieve more.”
Microsoft has conducted multiple rounds of layoffs since early 2023 when it initially stated it would trim 10,000 jobs before the end of that financial year.
In June 2024, the company laid off over 1,500 employees across its Azure for Operators and Mission Engineering departments, with a leaked memo from Jason Zander, former EVP of Microsoft Azure, attributing the layoffs to greater investment by Microsoft in artificial intelligence (AI).
When announcing layoffs, Microsoft has consistently used a boilerplate statement: “Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.”
