*Political headwinds and public criticism pushed hundreds of U.S. businesses to scale back or shelve their diversity, equity and inclusion (DEI) programs over the past six months. Now, a sizable share are quietly reversing course.
In a new poll of 750 senior leaders at organizations that have dialed back DEI efforts since late 2024, more than half said political pressure or public scrutiny drove the retreat, WTOP News reports. Fourteen percent have already decided the rollback was a mistake, and about 20 percent are reinstating DEI initiatives, according to the survey conducted April 25–May 5 by Resume Templates.
“Companies don’t want to seem performative, or even admit that they were wrong. They want to recruit more diverse talent. Bringing it back quietly, like putting information on their website, allows them to do it without making a big deal out of it,” explained Julia Toothacre, the firm’s career strategist.
Rebranding, not re‑labeling
To sidestep the political controversy tied to the term ‘DEI,’ some organizations are launching programs under names like ‘inclusive culture’ or ‘culture of belonging,’ preserving the same goals but avoiding the negative connotations of ‘DEI.’
Consequences of stepping back
One-third of executives who reinstated diversity measures reported increased difficulty in recruiting candidates from diverse backgrounds after the original policies were discontinued. “What did they think was going to happen when they eliminated all of their DEI initiatives?” Toothacre asked. “They inadvertently created an environment that said, ‘Hey, we don’t care if you are comfortable here or not.’”
While diversity and inclusion initiatives were originally intended to improve workplace environments, three-quarters of surveyed leaders indicated that their current emphasis is driven mainly by financial considerations rather than ethical or societal commitments. Firms highlighted risks such as consumer boycotts, reputational harm, declining customer loyalty, lost business relationships, and adverse media attention as key reasons for prioritizing DEI, despite potential political backlash.
“There was a lot of negative PR, and that impacted the bottom line with consumers, especially younger consumers. But also I think it hit productivity for some of these companies as well, because there was a lot of internal turmoil that happened. We probably saw a lot of people quit,” Toothacre said.
Not everyone is rushing back
The revival of diversity efforts varies widely: 22% of surveyed firms are actively exploring new inclusion initiatives, 40% have paused new diversity programs, and 4% are still undecided.
Broader corporate landscape
Pressure to retreat intensified in January when President Donald Trump signed executive orders ending federal diversity programs and putting government DEI staff on leave. Since then, major corporations such as Amazon, Boeing, Caterpillar, Ford, Lowe’s, McDonald’s, Meta, Toyota, and Walmart have announced pullbacks, according to Axios. Others, including Apple, Costco, Delta Air Lines, and United Airlines, have publicly reaffirmed their commitment to diversity goals.
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