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PepsiCo is restructuring its approach to diversity, equity, and inclusion (DEI), phasing out its Global Chief DEI Officer role as part of a new “Inclusion for Growth” strategy, according to a company memo from CEO Ramon Laguarta.
The memo, which surfaced on social media and was later confirmed by PepsiCo, marks the conclusion of the company’s five-year DEI strategy in 2025. Laguarta framed the shift as an effort to integrate inclusion more deeply into the business as a driver of growth.
As part of the changes, the company’s DEI leadership responsibilities will be absorbed into a broader role focused on “associate engagement” and “leadership development”.
Monica Bauer Mengelberg, who was named PepsiCo’s Chief Global DEI Officer in January 2024, is now listed as Global Employee Engagement Senior Vice President. Mengelberg had publicly posted about the DEI role as recently as November, when she was recognized as the Diversity, Equity, and Inclusion Person of the Year by the Hispanic PR Association.
Changes to supplier policies
The soft drink giant is also adjusting its supplier diversity strategy, broadening its scope to include small businesses, a move similar to Target’s recent rebranding of its supplier diversity team as “supplier engagement.”
The company will no longer conduct “single demographic category surveys” and will now assess sponsorships based on their contribution to overall business growth, according to the memo.
The company’s “A Space to Be You” initiative, originally launched in 2021 as part of its DEI efforts, will now serve as a flagship program aimed at fostering an inclusive culture. Previously, the initiative was introduced alongside commitments such as increasing Black and Hispanic supplier partnerships and achieving gender parity in managerial roles.
Corporations scaling back DEI
The shift mirrors similar moves by major retailers like Target, Walmart, and Lowe’s, which have scaled back DEI initiatives in recent months.
Meanwhile, companies such as Costco, Pinterest, and E.l.f. Beauty have maintained their commitments.
Reports from Bloomberg and NPR indicate that both PepsiCo and Coca-Cola have recently removed DEI language from investor reports, with suggestions that policy changes may be linked to compliance with government regulations.
