Risk & Economy » Diversity » Meta, Amazon, and the quiet retrenchment of DEI

Meta, Amazon, and the quiet retrenchment of DEI

Diversity, Equity, and Inclusion (DEI) initiatives, once celebrated as symbols of corporate responsibility, are quietly being scaled back by some of the world’s largest companies. Tech giants Meta and Amazon have recently made significant cuts to their DEI programs, reflecting a recalibration of priorities amid shifting political and legal landscapes.

These decisions are not isolated; they are part of a broader corporate trend away from highly visible diversity efforts, with companies like McDonald’s and Walmart following suit.

Meta, the parent company of Facebook and Instagram, has long positioned itself as a progressive force in both technology and workplace culture. But in recent months, the company has disbanded its DEI team and abandoned its “diverse slate approach,” a hiring policy designed to ensure diverse candidate pools. Meta has framed these moves as necessary adjustments to align with the evolving legal and cultural environment.

The timing of these changes is telling. The U.S. Supreme Court’s 2023 decision to end affirmative action in higher education has created a ripple effect, emboldening critics of corporate DEI initiatives. With President-elect Donald Trump preparing to assume office again, Meta appears to be preemptively adapting to a political climate increasingly hostile to what some conservatives label as “woke” corporate practices.

Amazon has taken a similar path, albeit with less fanfare. In December 2024, the e-commerce giant announced plans to “wind down outdated programs and materials” tied to diversity and inclusion, with a goal to complete the process by year’s end. While Amazon has not provided detailed explanations for its decision, the choice of words—referring to DEI efforts as “outdated”—is telling. It signals a shift in how the company views these initiatives, suggesting they are no longer seen as central to its mission or operations.

These changes come as DEI programs face mounting challenges, not just from politics but also from the boardroom. Critics argue that many of these initiatives, while well-intentioned, fail to deliver meaningful results and often alienate employees who perceive them as tokenistic or unfair. Companies are increasingly balancing these criticisms against the risks of maintaining DEI efforts in a contentious legal and political landscape.

For Meta and Amazon, the calculus appears pragmatic. Both companies operate in environments where the backlash against diversity programs has intensified. State-level laws have further restricted such initiatives, particularly for public institutions and government contractors. For corporations with national and global footprints, the operational complexities of maintaining DEI programs across jurisdictions have only grown.

It’s not just tech giants feeling the pressure. McDonald’s, Walmart, and Ford have also scaled back their DEI efforts, though with far less publicity. McDonald’s has reduced its external DEI partnerships, focusing instead on internal initiatives that align more closely with its business goals. Walmart, while not abandoning DEI altogether, has opted to keep its efforts quieter, signaling a strategic retreat from public-facing diversity commitments.

These rollbacks raise significant questions about the future of workplace inclusivity. DEI initiatives have long been touted as essential for fostering innovation, improving employee morale, and building teams that reflect the diversity of the global population. Yet, the rapid retreat from these programs suggests that their place in corporate America is far from secure.

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