DEI rollback | Amazon joins Meta in plans to phase out diversity initiatives

Amazon joins Meta in plans to phase out diversity initiatives

Amazon has announced plans to phase out several diversity, equity, and inclusion (DEI) programs, citing a shifting legal and political environment.

The decision follows similar moves by Meta, Walmart, and other major corporations as conservative opposition to DEI initiatives intensifies.

In a recent memo to employees, Amazon stated it was “winding down outdated programs and materials” related to representation and inclusion. The memo attributed the decision to changes in the legal and policy landscape, echoing sentiments expressed by Meta executives in recent weeks.

Meta’s vice president of human resources, Janelle Gale, acknowledged that the term “DEI” has become polarizing, with critics viewing such initiatives as promoting preferential treatment for certain groups. In a memo obtained by Axios, Gale cited the 2023 US Supreme Court decision striking down affirmative action in college admissions as a key factor influencing DEI rollbacks across industries.

Corporate DEI retreat

Amazon’s announcement is part of a broader trend among US companies that once championed diversity following the racial justice protests of 2020. Meta recently dismantled its DEI-dedicated team and eliminated programs focused on hiring, training, and supplier diversity. The company has also taken other actions seen as conciliatory to conservative interests, including appointing former Ultimate Fighting Championship CEO Dana White, a close ally of Donald Trump, to its board of directors.

Conservative groups have criticized DEI policies and threatened legal action, emboldened by the Supreme Court’s ruling, leading to a climate of uncertainty for organizations striving to balance inclusivity with evolving regulatory and societal pressures.

Not all companies are retreating from their commitments, however, with Apple and Costco resisting calls to end DEI programs, emphasizing that such initiatives are integral to their corporate values and long-term strategies.

Apple’s board recently urged shareholders to reject a proposal to abolish DEI efforts, arguing the company has robust compliance mechanisms to address potential risks.

Costco, similarly, has reaffirmed its dedication to fostering an inclusive workplace, setting itself apart from the companies scaling back their efforts in the face of social media criticism.

HR's dilemma

The scaling back of DEI initiatives presents a complex dilemma for HR leaders. Chief Human Resources Officers and Chief People Officers must strike a balance between meeting evolving legal requirements, aligning with company values, and addressing employee expectations.

HR professionals are being asked to adopt innovative approaches that align inclusivity efforts with the changing political and legal climate. Navigating that terrain will require a nuanced response to regulatory developments while ensuring that workplace culture remains equitable and progressive.

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