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Troubled aviation giant Boeing, has joined the growing list of corporations canning Diversity, Equity, and Inclusion (DEI) departments, combining its DEI efforts with a broader HR team that oversees talent and employee experience.
The structural change comes under the leadership of new CEO Kelly Ortberg, who has implemented a 10% headcount reduction in an effort to streamline operations across the plane maker.
The DEI unit’s closure signals Boeing’s shift in approach at a time when many US companies face pressure to scale back or reframe DEI efforts in response to criticism from right-wing activists.
Boeing’s DEI Vice President Sara Bowen, who led the now-disbanded department, left the company last Thursday. Reflecting on her time in a LinkedIn post, Bowen commended her team’s achievements and the challenges they faced in advancing diversity goals within the company.
"Our team strived every day to support the evolving brilliance and creativity of our workforce," she wrote. "The team achieved so much - sometimes imperfectly, never easily - and dreamed of doing much more still. All of it has been worth it. Because behind every effort there has been a person: An unheard voice, an idea waiting to bloom. The people make the company what it is, and it’s the people who will restore it to a state of trusted excellence."
Despite the restructuring, Boeing has reaffirmed its commitment to a merit-based, inclusive workplace. It stated that it remains dedicated to recruiting diverse talent and fostering an environment where employees can thrive.
The company emphasized, however, that its hiring practices are rooted in equal opportunity rather than fixed outcome targets, a sentiment likely aimed at countering concerns around DEI quotas.
“Boeing remains committed to recruiting and retaining top talent and creating an inclusive work environment where every teammate around the world can perform at their best while supporting the company’s mission,” a company statement said, adding it operates “a merit-based performance system with procedures aimed at encouraging an equality of opportunity, not of outcomes.”
DEI still under fire
The changes at Boeing also follow outreach from DEI critics, such as activist Robby Starbuck, who claims to have influenced similar decisions at other corporations, including Toyota and Harley-Davidson.
Starbuck, an outspoken critic of DEI programs, reached out to Boeing’s CEO and board chair earlier this month, reportedly threatening a public campaign if the company didn’t scale back its DEI efforts. Boeing, under Ortberg’s new leadership, has opted for this reorganization amid the intensifying debate around corporate DEI strategies and the legal risks they may carry.
The firm’s move away from a standalone DEI department is a significant shift, given its previous pledges to increase representation among under-represented groups. In response to social calls for racial equity, the company committed to raising Black employment by 20% by 2025, nearly achieving this goal last year with a 17% increase.
Its workforce has historically skewed towards white and male, but under previous CEO Dave Calhoun, it made strides in diversifying its talent pool. Now, however, the future of such DEI programs remains uncertain.
Survey says continued support for DEI
Yet, as Boeing’s DEI policy changes course, a recent survey from The Conference Board suggests that a large proportion of US workers continue to value diversity initiatives.
Conducted among 1,345 workers, the survey found that 58% believe their companies are investing an appropriate amount in DEI, while 21% wish for greater investment.
Furthermore, DEI efforts remain a non-negotiable factor for many employees, especially women and black workers. Almost half (49%) of women and over half (56%) of black respondents indicated they would not consider working for a company that didn’t prioritize DEI.
The survey highlights demand among employees for DEI-focused policies that foster fairness, belonging, and equitable compensation. It shows that 81% of companies currently have fairness and equity policies, and a majority report positive impacts from DEI initiatives on collaboration and engagement.
But only 43% perceive these initiatives as improving productivity, pointing to a nuanced perspective on DEI's impact on overall workplace efficiency.
Despite legal and political pressures, most corporations maintain robust DEI programs. Around 63% of DEI leaders report that the political climate has complicated DEI initiatives, with the 2023 Supreme Court decision on affirmative action cited as a significant challenge.
Undaunted, companies are adjusting terminology and focusing on inclusion and belonging, showing a commitment to DEI’s core principles at a difficult moment.
Boeing’s change of direction reflects a complex and fragile DEI landscape for corporations currently. While companies like Boeing grapple with operational changes, widespread employee support indicates that DEI remains a critical priority for the workforce, as companies balance social responsibilities with shifting political and legal realities.
