30 Jul 2025 How Companies Are Navigating the DEI Divide

Corporate Reactions to DEI Backlash: Rollbacks and Resistance

While U.S. federal policy set the tone for dismantling DEI initiatives in early 2025, corporate America has responded in sharply divergent ways. This second installment in SVI’s DEI series turns its focus to the private sector, where companies have begun reassessing their diversity, equity, and inclusion strategies under growing political, legal, and cultural pressure.

Some corporations moved quickly to scale back or eliminate DEI programs, citing legal risks, shareholder concerns, or alignment with shifting state and federal regulations. Others have responded more subtly: rebranding or removing DEI language from public filings and replacing “equity” with terms like “opportunity” or “talent.” These shifts signal a quiet retreat, often driven by compliance departments or investor messaging strategies.

Yet, this is not a uniform rollback. On the other side, a number of high-profile firms, particularly in the tech and retail sectors, have stood firm or even doubled down on their inclusion commitments. Whether driven by internal values, workforce expectations, or long-term brand positioning, these companies have resisted the pullback, reaffirming that DEI remains essential to their business strategy.

The table below offers a snapshot of how major firms have responded, whether by eliminating programs, retreating from language, or publicly reaffirming their commitment to DEI values.

Figure 1. Corporate Reactions to DEI Rollbacks in 2025

Among those companies eliminating or scaling back DEI programs:

• Meta eliminated its core DEI programs – from diversity-focused hiring and training to supplier diversity – in late 2024[1]. Meta’s HR leadership pointed to a changing “legal and policy landscape” around DEI. This shift followed the U.S. Supreme Court’s landmark 2023 decision striking down race-conscious college admissions, which many legal analysts interpreted as a signal of heightened judicial skepticism toward affirmative action more broadly. The ruling, combined with rising political scrutiny and state-level pushback, placed corporate DEI efforts under intense examination and legal risk.
• Google, a federal contractor, has made similar retreats, scrapping its diversity hiring goals and scaling down internal DEI teams to comply with new executive orders and court decisions[2].
• This retreat trend isn’t confined to tech: several retail and manufacturing giants (Walmart, McDonald’s, Lowe’s, among others) have phased out or rebranded their DEI programs in the past year6.

From tech to retail to finance, a clear pattern has emerged. Goals and quotas are out; references to “equity” or “racial justice” are being scrubbed; diversity units are being downsized or disbanded. Even language is being sanitized – “diversity and inclusion” departments reappear as “talent” or “opportunity” departments. Company leaders cite compliance with new laws, fear of shareholder lawsuits, and backlash from customers as reasons.

Companies That Stand Their Ground:

On the other side, a number of high-profile companies have resisted the pressure: either quietly maintaining their initiatives or actively doubling down on their commitment to diversity. They continue to position DEI as a core business value and long-term strategic asset.

• Apple Inc. is a standout case: in early 2025, its shareholders overwhelmingly rejected a proposal to dismantle Apple’s inclusion and diversity programs, even as external groups argued those initiatives might invite legal challenges[3]. Apple’s leadership not only vowed to stick with its DEI agenda despite political pressure, but also pointed to strong compliance measures ensuring the programs operate within the law. Apple’s management, including CEO Tim Cook, spoke strongly in favor of inclusion. “Our strength has always come from people with diverse backgrounds and perspectives coming together to innovate,” Cook told investors, reaffirming that a “culture of collaboration” built on respect is core to Apple’s success4.
• Microsoft has taken a similar stance; the company publicly emphasizes that DEI is foundational to its strategy and talent pipeline, directly tied to innovation in the AI era and global competitiveness. Even amid tech layoffs that affected some DEI roles, Microsoft clarified that its core diversity team remains intact and that it is integrating DEI principles into business operations rather than abandoning them[4].
• In January 2025, Costco shareholders rejected a proposal urging the wholesale club operator to evaluate any risks posed by its diversity, equity and inclusion practices. 98% of shares voted against the proposal. The board said it believes “our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary. The report requested by this proposal would not provide meaningful additional information.” In May 2025, Costco says DEI is key to its success, pointing out that at the end of last year, about 90% of its customers worldwide had renewed their memberships[5][6].

While some organizations held firm, others in finance took a more cautious or symbolic approach.

• JPMorgan Chase opted to partially concede to critics by rebranding its DEI programs, yet maintaining the programs themselves. In March 2025, JPMorgan announced it was renaming its “Diversity, Equity and Inclusion” department to “Diversity, Opportunity and Inclusion” (DOI). By swapping out the contentious word “equity” for “opportunity,” JPMorgan signaled it wanted to emphasize merit-based advancement and avoid the implication of guaranteeing outcomes. However, importantly, JPMorgan did not eliminate its initiatives – it still has mentorship programs, employee resource groups, and recruiting efforts aimed at underrepresented talent, just under a different banner[7].
• Meanwhile, Goldman Sachs backed down from previous diversity stipulations; it quietly removed its board-diversity pledge for IPO clients and scrubbed its annual report of specific diversity targets, even as shareholders overwhelmingly rejected anti-DEI resolutions (98% opposed)[8].
• At the same time, Bank of America and BlackRock adjusted their DEI frameworks: they removed explicit “diversity” language and aspirational representation goals from reporting, merging DEI into broader “Talent & Culture” divisions, and ended requirements like interviewing a diverse slate for open roles, citing compliance with the new legal[9][10].

These symbolic retreats often reflect risk-mitigation rather than rejection of DEI itself, reframing language to avoid legal entanglements or political backlash, while maintaining core inclusion goals under less contentious branding. It is clear that not all stakeholders believe DEI was merely a fad or liability. In fact, in many of the examples above, investors and executives articulated a belief that diversity drives innovation, growth, and competitiveness.

Taken together, these corporate reactions illustrate a clear divide between retreat and resistance on DEI. Many firms slashing diversity programs see it as a pragmatic response to current pressures, from budget cuts to shifting regulatory winds, but they risk eroding hard-won trust with employees and consumers. In contrast, the companies doubling down on DEI treat it as a long-term investment in talent, innovation, and brand integrity. Early indicators suggest this steadfast approach can pay off: organizations that held firm on DEI have seen upticks in public reputation, while several rollback leaders suffered image declines or employee morale issues8.

Finally yet importantly, the cutbacks have also sparked sharp criticism from civil rights advocates and raised red flags among certain investors and consumer segments. Several ESG-aligned funds and institutional investors have publicly cautioned that sudden reversals in DEI policy can undermine long-term value by alienating talent, weakening innovation pipelines, and exposing firms to reputational risk. Similarly, consumer backlash has emerged among younger, socially conscious demographics, who increasingly expect companies to uphold public commitments on inclusion. In sectors like retail, tech, and consumer goods, where brand loyalty and workforce diversity directly influence profitability, such reversals risk damaging public trust and market positioning, particularly if the changes are perceived as reactive or opportunistic[11].

The current takeaway is that corporate DEI strategy is at a crossroads. Whether a company retreats or resists, the decision sends a strong message about its values, and will likely influence its ability to attract diverse talent, maintain customer loyalty, and navigate the evolving social and regulatory landscape in the years ahead.

The near future will test whether these tensions evolve into a new ESG baseline or deepen a divide between policy compliance and public expectation.

[1] CBS News: Meta, McDonald’s, Ford and others scaling back DEI efforts: https://www.cbsnews.com/news/meta-dei-programs-mcdonalds-walmart-ford-diversity/

[2] TIME: U.S. companies scaling back DEI as Trump targets initiatives: https://time.com/7260689/us-companies-scaling-back-dei-efforts-trump-targets-initiatives/

[3] Washington Informer: Apple maintains DEI pledges amid political headwinds: https://www.washingtoninformer.com/apple-pledges-diversity-initiatives-despite-pressure/

[4] EmployDiversityNetwork: 10 companies still committed to DEI in 2025: https://employdiversitynetwork.com/blog/2025/3/7/10-employers-still-committed-to-diversity-equity-and-inclusion-dei-in-2025

[5] Marketplace: Costco Doubles Down on DEI Despite National Backlash https://www.marketplace.org/story/2025/05/22/costco-doubles-down-on-dei-and-benefits

[6] AP News: Costco Shareholders Overwhelmingly Reject Anti-DEI Proposal https://apnews.com/article/costco-shareholder-proposal-diversity-dei-0330f448741b35f2f788a36948ff3f95

[7] Diversity.com: JPMorgan Quietly Rebrands DEI Department as ‘Diversity, Opportunity and Inclusion’ https://diversity.com/post/jpmorgan-dei-rebrand-2025

[8] Forbes: Companies Reject Anti-DEI Shareholder Proposals Despite Rollback: https://www.forbes.com/sites/mariagraciasantillanalinares/2025/05/08/even-as-many-companies-retreat-from-diversity-efforts-they-quash-anti-dei-shareholder-resolutions/

[9] ESG Dive: BlackRock ends diversity goals and folds DEI into talent/culture: https://www.esgdive.com/news/blackrock-ends-diversity-goals-merges-dei-team-into-talent-and-culture/741391/

[10] Sustainability Magazine: Bank of America and BlackRock remove DEI terms from reports: https://sustainabilitymag.com/articles/bank-of-america-and-blackrock-remove-dei-terms-from-reports

[11] Axios: Patagonia, Costco, Microsoft see reputation lift amid DEI pressure: https://www.axios.com/2025/05/29/dei-patagonia-costco-microsoft-reputation-surge