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Will the rest of the industry take its lead?
Earlier this month, Meta released an internal memo announcing plans to scrap its diversity, equity, and inclusion (DEI) programs, citing changes in “the legal and policy landscape surrounding diversity, equity, and inclusion efforts in the United States,” according to documents seen by Axios.
“The Supreme Court of the United States has recently made decisions signaling a shift in how courts will approach DEI … The term ‘DEI’ has also become charged, in part because it is understood by some as a practice that suggests preferential treatment of some groups over others,” wrote Janelle Gale, vice president of human resources at Meta.
The timing was noteworthy. Meta had just announced that it was cutting third-party fact-checking and content moderation on its platforms in the US. Both initiatives can be interpreted as part of a business-strategy overhaul that more closely aligns with the incoming White House administration and its political supporters.
Meta has since announced layoffs for 5% of its staff, with Zuckerberg telling podcaster Joe Rogan that the company will likely begin automating coding jobs with AI.
Though corporate DEI programs have been on the decline since 2022, rollbacks have been especially visible in the tech sector, which was once at the vanguard of the movement to make corporations more diverse, inclusive, and equitable. Now, amid the AI boom’s fast-changing business demands and an ideological about-face from high-powered industry giants, the tides have quickly turned.
Elon Musk, an early arbiter of Silicon Valley’s rightward political shift, was among the first tech of several CEOs to slash DEI initiatives. However, in declaring the decision to follow suit, Meta – a company whose former COO, Sheryl Sandberg was once the poster child for women’s representation in corporate leadership – has signalled a sea change.
With other major players such as Amazon and Google having also chipped away at diversity plans, the industry shows little sign of turning back. Although, Apple and Microsoft are two companies pushing back against the pressure.
In an industry that already suffers from the underrepresentation of women and racial minority groups, experts warn of a further erosion of diversity, posing potentially dire ramifications for workplace culture, talent pipelines, and even business bottom lines.
A minefield of unintended consequences
Meta used to be at the forefront of advancing workplace policies that championed gender and racial equity. In 2015, Zuckerberg was publicly lauded for taking a two-month paternity leave following the birth of his first daughter, a practice that has been shown to reduce sexism at home and in the workplace. Now he says companies need “more masculine energy.”
Following the murder of George Floyd in 2020, Meta was quick to outline robust targets to combat racial injustice within the company and at-large.
Things began to change in 2023, when the company laid off some 10,000 staff, including numerous employees who had specifically been hired to oversee diversity programs. By then, the reduction of DEI-related roles was becoming a pattern across tech. Fortune reported that DEI and HR staff members were being disproportionately affected by the industry’s widespread reductions in force.
With Meta now planning a comprehensive disinvestment from DEI efforts, some industry insiders fear a wider reversal of hard-won gains. “We’ve been fighting inequality and bias in the workplace for so long, and, honestly, we still have a long way to go,” said Tetiana Burda, head of HR at Syndicode. “Meta is a trendsetter that gives other companies the green light to start marginalizing already marginalized groups even more.”
The potential consequences of DEI rollbacks extend beyond social justice imperatives. Workers from marginalized groups are likely to feel put off by anti-DEI messaging, and may be more inclined to leave the organization. DEI rollbacks could also hamper the recruitment of promising young talent. A 2023 report by Spectra Diversity found that Gen Z and millennial workers expect workplaces to align with their social values, which often include commitments to DEI.
Bad for business
“More and more, we see that teams with diverse workforces tend to outperform their competitors. This is especially relevant to the tech sector. That’s because diverse teams mean diverse perspectives and visions, which fosters innovation,” Burda said. “For Meta to keep its leading position in the industry, they need employees of different backgrounds who can bring in fresh ideas. Otherwise, they risk facing stagnation.” The same is also true of organizations that follow Meta’s lead and eliminate their own DEI initiatives.
Marin Cristian Ovidiu, CEO of Online Games, echoes the view that diversity is good for business. “Teams with different backgrounds bring fresh ideas, make better decisions, and create products that appeal to more people. Getting rid of DEI programs could mean losing this edge and making it harder for a company to compete worldwide.”
The implicit messaging of Meta’s decision may also deliver a blow to the company’s public image. “This move shows that short-term profits are becoming more important than long-term social responsibility,” said Elvis Sun, the founder of PressPulse AI. “This may make shareholders doubt the company’s dedication to doing business in an honest and socially responsible way.”
London • June 16 & 17, 2025
Speakers Gergely Orosz, Camille Fournier and Lara Hogan confirmed.
Where managers can step in
In the aftermath of top-down rollbacks, individual managers are poised to play a leading role in maintaining DEI principles.
Chris Jones, the founder and CEO of Spectra Diversity, says that managers have ample leverage to champion a culture of inclusivity within their teams by offering resources and support to underrepresented employees. Managers should also be prepared to tamp down on workplace bullying or harassment – “even in top performers.”
Sun recommends that managers hold regularly-scheduled team meetings to discuss any concerns that may arise as a result of DEI rollbacks. “Due to the fact that they work directly with their teams, middle managers are in a good position to lead these conversations and make it easy for employees to share their thoughts, concerns, and experiences,” Sun said. From there, managers can step in to help address related problems or mediate interpersonal tensions.
Hiring managers, on the other hand, can make a point of prioritizing efforts to seek out candidates from diverse talent pools. “This means creating inclusive hiring procedures, for instance, by blindly reviewing resumes and setting criteria based solely on skills,” Burda suggested.
Finally, managers can help reframe conversations by drawing attention to the broader scope of where systemic inequities can occur. Moving away from the sometimes polarizing language of DEI doesn’t have to mean abandoning DEI principles. A DEI rebrand could even help expand organizational buy-in.
Such efforts may be more impactful now than ever. Unfortunately, they just got much harder to put into place.
