Diversity measures no longer “business critical” at Microsoft, internal emails suggest

Microsoft has been hit with fierce internal criticism after eliminating a diversity, equity, and inclusion (DEI) team, according to internal documents viewed by Business Insider.    

The criticism came from a team leader at Microsoft who wrote of a changing focus at the firm in an email sent to thousands of employees, focusing on the lack of investment and commitment to DEI. 

"True systems-change work associated with DEI programs everywhere are no longer business critical or smart as they were in 2020," the team leader wrote.

According to the email, the DEI team was eliminated at the start of July 2024 on the back of “changing business needs,” though it is unclear how many roles were removed in total.

This comes just over four years after Microsoft announced a greater commitment to its DEI department, with CEO Satya Nadella having pledged “action to help address racial injustice and inequity” as part of the 2020 Black Lives Matter movement.

Nadella said Microsoft would invest $150 million into diversity and inclusion measures at the time and promised to double the number of black people in senior positions by 2025. 

Microsoft claims this latest move and subsequent backlash pose no contradiction with these goals, as senior communications director Jeff Jones told ITPro in a statement.

“Our D&I commitments remain unchanged. Our focus on diversity and inclusion is unwavering and we are holding firm on our expectations, prioritizing accountability, and continuing to focus on this work,” Jones said. 

Microsoft is “quiet quitting” diversity efforts

Waseem Ali, CEO of data consultancy Rockborne, thinks Microsoft’s move is part of a wider trend of “quiet quitting” DEI efforts in the tech industry. 

“Other global tech companies like Google and Meta have also made significant cuts to DEI programs in 2023 and this, combined with statements from key figures are helping to proliferate the sense that having a diverse workforce is a ‘nice-to-have’ rather than an essential,” he said. 

This is particularly problematic when the industry at large is facing tech talent shortages, he added. 

Lindsey Zuloaga, HireVue’s chief data scientist, told ITPro diversity is a hugely important aspect of recruitment and general workforce management. 

“The importance of a diverse workforce cannot be understated — diversity increases productivity, produces more innovation, and lowers employee turnover,” she said. 

Ali added that a lack of “diverse perspectives” is particularly problematic in an industry like tech where there is such a reliance on fresh and innovative ideas.  

Similarly, there is the worry that organizations lacking in workforce identity could have an impact on AI development which is susceptible to issues of discrimination.

“Without diversity of thought in the workforces of major tech players such as Microsoft, innovations such as AI for example, could stall and biases may leak into the development AI models” Ali added. 

“We all have biases, but if the teams that are developing data and AI strategies are not balanced, there is a danger that this could be reflected in the development and design of the technology,” he said.