Diversity, Equity, and Inclusion (DEI) initiatives have long been part of corporate strategies, evolving from compliance-driven policies to integral components of business strategy. However, despite initial momentum, DEI has faced significant setbacks, culminating in widespread corporate rollbacks by 2025. Let’s explore the rise and decline of DEI through a timeline-driven analysis.

The Foundations of DEI (1960s-2000s)

The roots of DEI trace back to the mid-20th century, when equal employment laws and affirmative action in the United States set the stage for workplace diversity programs. Initially, these efforts focused on legal compliance, ensuring organizations met anti-discrimination requirements.

During the early 2000s, corporate attitudes shifted, recognizing DEI as more than a legal obligation. Companies began appointing Chief Diversity Officers, and DEI consulting services flourished. Rather than being a mere compliance exercise, diversity and inclusion became core to employer branding and talent acquisition.

The Rise of DEI as a Business Strategy (2010s-2020s)

The early 2010s saw increased corporate investment in DEI, driven by research linking diverse workplaces to stronger financial performance, innovation, and employee engagement. Global movements such as #MeToo and Black Lives Matter further propelled DEI into the mainstream, prompting businesses to address systemic inequities.

The COVID-19 pandemic and the racial reckoning following George Floyd’s death in 2020 further accelerated DEI efforts. Companies pledged billions toward diversity initiatives, increased minority representation in leadership roles, and implemented supplier diversity programs.

The Backlash and Legal Challenges (2023-Present)

Despite early successes, DEI programs began facing legal and political headwinds. The Supreme Court’s 2023 ruling against affirmative action in college admissions emboldened critics who argued that corporate DEI programs constituted reverse discrimination. As lawsuits targeting diversity hiring practices gained traction, some organizations began scaling back DEI commitments.

The Trump Administration's Crackdown on DEI (2025)

On January 20, 2025, President Donald Trump, on his first day back in office, signed an Executive Order titled “Ending Radical And Wasteful Government DEI Programs And Preferencing.” The order labeled DEI efforts as "immense public waste and shameful discrimination,” leading to the immediate placement of all federal DEI staff on paid leave, with plans for eventual layoffs.

A second Executive Order, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," reversed several policies aimed at increasing diversity over the past 50 years. The impact was swift, affecting not just government agencies but also corporate America, where companies increasingly distanced themselves from DEI programs.

Corporate Rollbacks of DEI (2024-2025)

A growing number of corporations have responded to political and legal pressures by scaling back or dismantling their DEI initiatives. Below are some of the most significant cases:

Pepsi

In February 2025, Pepsi announced it would end DEI workforce representation goals, impacting managerial roles and supplier diversity efforts. The diversity section of PepsiCo’s hiring website was removed, signaling a broader shift away from DEI commitments.

Disney

Disney confirmed the end of its “Reimagine Tomorrow” initiative, which promoted underrepresented talent. Additionally, diversity-related performance factors were removed, and disclaimers about cultural sensitivity were eliminated from films such as Dumbo.

PBS

In compliance with Trump’s Executive Order, PBS CEO Paula Kerger announced the broadcaster would cease all DEI programs. Senior DEI executives Gina Leow and Cecilia Loving departed from the company.

Tech and Finance Giants

• Google scrapped its diversity hiring goals and reevaluated DEI programs to align with federal mandates. Observances like Black History Month and Women’s History Month were also removed from Google’s calendar.

• Meta ended its DEI team and phased out diversity-focused hiring and supplier initiatives.

• Amazon eliminated DEI mentions from its “Policy Positions” page and ceased Black and LGBTQ+ inclusion programs.

• Goldman Sachs, Morgan Stanley, JPMorgan Chase, and Citigroup began reducing DEI programs, publicly acknowledging political and legal scrutiny.

Retail and Consumer Goods

• Target discontinued DEI hiring goals and stopped annual inclusion reporting to external groups.

• McDonald’s retired its DEI supplier pledge and rebranded its diversity team as the “Global Inclusion Team.”

• Walmart phased out DEI training and removed LGBTQ+ merchandise.

• Harley-Davidson, Lowe’s, and Boeing ended or significantly reduced their DEI efforts following political and consumer backlash.

Paramount 

Paramount Global is adjusting its DEI programs in response to directives from the Trump administration. A memo from its co-CEOs stated that the company would no longer set aspirational numerical goals for race, ethnicity, sex, or gender in hiring. Additionally, Paramount has stopped collecting demographic data from U.S. job applicants, except where legally required. This move aligns with broader efforts to scale back corporate DEI policies under political pressure.

Apple 

Apple’s DEI efforts came under direct attack from President Trump, who demanded in a Truth Social post that the company eliminate such programs. This came a day after Apple shareholders voted to reject an anti-DEI proposal, marking a contrast with other corporations that have started rolling back diversity commitments. While Apple has not formally announced changes, political and shareholder pressures may influence its future DEI strategy.

Bank of America

Bank of America recently ended its “aspirational” diversity hiring goals and replaced the term “diversity” with “talent” and “opportunity” in official reports. This shift reflects a growing corporate trend of distancing from DEI language to mitigate legal and political risks while maintaining general inclusion efforts under a different branding.

KPMG US and the Consulting Industry

KPMG removed years of DEI reports from its website and discontinued its Accelerate 2025 initiative. The firm cited evolving legal requirements and compliance challenges as key factors in the decision.

Coca-Cola’s Warning Amid Corporate Retreats

While many companies rolled back DEI, Coca-Cola issued a warning in its 2025 annual filing that a less diverse workforce could pose a business risk. The company stated that diversity fuels innovation and growth, emphasizing the potential negative impact of losing specialized talent. However, Coca-Cola—like many other federal contractors—is facing mounting pressure to comply with new regulations.

The Future of DEI: A Turning Point

The rapid retreat from DEI initiatives has ignited debates about corporate responsibility, legal risks, and business sustainability. While some argue that a focus on merit-based hiring aligns with long-term economic interests, others warn that the dismantling of DEI efforts could lead to reduced innovation, talent attrition, and reputational damage.

As companies navigate these changes, the question remains: Is this the end of DEI as a corporate priority, or will businesses find new ways to integrate diversity and inclusion within an evolving legal landscape?

The coming years will determine whether DEI’s decline is temporary or marks a permanent shift in corporate America’s approach to workplace equity and inclusion.