USA 
United Kingdom
Deloitte’s UK and US offices are apparently at odds over the formal role of diversity, equity, and inclusion (DEI) in their workplaces.
Hours after Deloitte’s US staff were informed of a decision to “sunset” the company’s DEI reporting, and ordered to remove pronouns from their email signatures, Deloitte UK CEO Richard Houston sent a memo to UK staff confirming that its diversity initiatives would “remain critical to our firm.”
Deloitte US has become the latest major organization to end diversity commitments in recent weeks and months, following the likes of Google, Amazon, Meta, and Accenture.
Some of those businesses have signaled that their change in corporate policy was enacted to align with Government policy, amid a crackdown by President Trump on DEI across his federal agencies.
In the first weeks of his presidency, Trump issued an executive order marking DEI policies as unlawful, arguing they violate civil rights laws and erode national unity.
While he did not directly order private firms to end DEI, he urged them to follow his guidance and end diversity commitments.
Now Deloitte US has followed in the footsteps of several agencies, including the Department of Defense, in ordering staff to no longer include pronouns in their email signatures.
Individuals familiar with the matter told the Financial Times this policy was implemented “to align with emerging government client practices and requirements.”
To ‘sunset’ or to ‘commit’? Deloitte splits on DEI
Beyond ordering employees to stop using pronouns in their email signatures, a separate email revealed broader measures, including a move to “sunset” diversity goals, the firm’s yearly report on progress, and DEI “programming.”
Previous goals set by the firm included targets for 2025 such as improving gender and ethnic representation among its partners, principals, and managing directors.
But Deloitte UK’s boss reacted quickly to the news, sending a memo to his staff that reiterated the UK’s continued commitment to DEI.
Unlike the US, Houston said the auditor’s UK branch will remain “committed to our diversity goals” and “continue to report annually on our progress on inclusion.”
He added that diversity networks “will remain critical to our UK firm” and indicated that shifting government priorities in the US will not influence his organization’s stance: “Events in the external landscape do not change our commitment to building an inclusive culture and helping all our people to reach their full potential.”
Earlier this week, Deloitte US said it had conducted “a detailed review of all pertinent government directives,” ending diversity measures to “ensure we comply.”
Differences at Deloitte – a sign of division for global employers?
Despite the conflicting messages delivered to Deloitte’s UK and US staff, Houston indicated that he understands why his American counterparts made this shift, suggesting there is some unity on the importance of creating inclusive workplaces.
The change “reflects the need to remain fully compliant with federal laws. [US leadership] have also been clear that they remain committed to fostering an inclusive culture and sense of belonging for all,” he added.
Deloitte US told its staff that the company would keep some initiatives in place, including “inclusion councils,” ethnic networks, and heritage month events, while continuing to make its recruitment practices “fair and non-discriminatory.”
“Everyone is welcome at Deloitte,” the email to US employees.
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But there is no denying a fork in the road has occurred between the two branches of the ‘big four’ firm, and their stances on diversity measures in the workplace.
For one, the fully-fledged continuation of DEI is business-critical. For the other, it is – apparently - simply no longer conducive to the health and success of the firm.
Wherever one stands on that decision, it is a sure sign that global employers face the growing threat of international division on key workplace topics, including diversity.
Global division create headaches for HR
Deloitte is not the first firm to face this issue in recent weeks. At Meta, CEO Mark Zuckerberg recently spoke on the company’s move to eliminate all DEI measures. “After the last several years, we now have an opportunity to have a productive partnership with the United States government, and we’re going to take that,” he said.
The tech firm’s VP of HR also told employees in an email that the decision was made thanks to the “legal and policy landscape surrounding diversity, equity and inclusion efforts in the United States is changing.”
But UK-based Meta staff are reportedly unhappy with the decision, according to Prospect, a trade union representing the workers, that said employees feel "concerned" and "let down" by the changes.
The union’s assistant secretary, Andrew Sturtevant, authored a letter to Lizzie Runham, Meta’s HR director for Europe, the Middle East, and Africa (EMEA), warning: “Staff of many years’ service at Meta have highlighted how incredibly let down they feel by their employer’s change of tone.”
Whether decisions to end DEI initiatives are motivated by a change in a country’s legal policy, political pressure, or another reason altogether, global employers must be aware of the risks that may come from creating internal division and conflict within their firms.
Deloitte will certainly not be the last firm to have different geographies adopting separate stances on divisive issues, particularly as the thorny issue of DEI continues to leave executives and boardrooms in a twist.
