Why is big tech rolling back DEI initiatives?

Since the start of 2025, many prominent big tech companies have publicly scaled back their DEI programs, in response to shifting requirements by the US government.

Within days of taking office, President Trump signed an executive order prohibiting diversity, equity and inclusion (DEI) policies within federal departments and sending a message and demanded civil investigations into companies that have such programs in place.

Many notable tech firms have since announced plans to roll back diversity in recruitment targets, including Accenture, Amazon, Google, and Salesforce.

Days before Trump was inaugurated, Meta announced it was rolling back its diversity efforts effective immediately, including the requirement to interview candidates from underrepresented backgrounds for open roles and openly doing business with diverse suppliers.

References to terms including ‘DEI’, ‘diversity’, and ‘racial equity’ fell 72% in the public documents of Fortune 100 companies between January 2023 and May 2025, per Gravity Research data.

The analysis, which looked at DEI, ESG, and sustainability reports alongside other documentation such as earnings calls and SEC filings, tracked a 98% decline in the term ‘DEI’ itself and added that more neutral language such as ‘diverse perspectives’ and ‘belonging’ also fell 34% over the same period.

Big tech has moved away from DEI

Meta explained in an internal memo, first seen by Axios, which stated that “the legal and policy landscape surrounding diversity, equity and inclusion efforts in the United States is changing”.

The firm didn’t respond to a request for comment about how the decisions made might impact its workers going forward.

In a fact sheet issued following Trump signing the executive order, the White House argued that many corporations are using DEI as “an excuse for biased and unlawful employment practices”. Separately, US attorney general Pam Bondi said that the Justice Department will "investigate, eliminate, and penalize" those in the private sector that continue to run “illegal” diversity programs.

Hyperscaler firms like Amazon and Google that have contracts with federal agencies have moved quickly to distance themselves from DEI. The two cloud computing giants won part of the Pentagon’s $9bn cloud contract at the end of 2022, per Reuters.

According to an internal memo published by The Verge, Google has decided to move away from having aspiration diversity hiring goals because of its role as a federal contractor.

Google parent Alphabet’s annual filing with the SEC, dated February 5, omitted a line stating that the company is “committed to making diversity, equity, and inclusion part of everything we do and to growing a workforce that is representative of the users we serve”. It had appeared in the previous annual filing.

A Google spokesperson told ITPro: ”As we’ve shared, we’re committed to creating a workplace where all our employees can succeed and have equal opportunities. We’ve been reviewing our programs designed to help us get there and our teams are evaluating changes on this topic”

When asked what impact the changes might have on workers, the spokesperson pointed out that program reviews are undertaken annually, it’s just this year Google’s management has decided to inform employees that hiring goals will no longer be linked to representation.

Another federal contractor, Accenture, has told its employees it’s “sunsetting” diversity goals and ending career development programs for "people of specific demographic groups”, according to an internal memo seen by Reuters. Accenture didn’t respond to a request for comment.

When asked what impact the changes might have on workers, the spokesperson pointed out that program reviews are undertaken annually and that this year Google’s management has decided to inform employees that hiring goals will no longer be linked to representation.

Another federal contractor, Accenture, has told its employees it’s “sunsetting” diversity goals and ending career development programs for "people of specific demographic groups”, according to an internal memo seen by Reuters. Accenture didn’t respond to a request for comment.

Apple shareholders vote against DEI changes

Not all of big tech has followed suit. Apple shareholders voted to keep the iPhone maker’s DEI policies at its AGM on February 25.

Conservative think tank the National Center for Public Policy Research had submitted a proposal to get Apple to bring its diversity efforts to an end on the grounds that “DEI poses litigation, reputational and financial risks to companies, and therefore financial risks to their shareholders”.

Apple CEO Tim Cook said at the AGM that “our strength has always come from hiring the very best people and then providing a culture of collaboration, one where people with diverse backgrounds and perspectives come together to innovate”. But Cook also acknowledged that the firm’s DEI policies may need to shift over time as the legal landscape evolves.

Microsoft is another notable holdout. Despite reports that it had laid off staff in diversity and equality teams in 2024, the firm has not publicly announced plans to shift away from DEI in 2025.

There are concerns that moving away from DEI efforts could have serious implications for workforce success, undoing efforts to improve employee morale and spur innovation such as Proudflare, within Cloudflare.

Ditching diversity efforts across the board could reduce the skilled workforce and be detrimental to the long-term health of the tech industry. DEI efforts attract a wider talent pool, which leads to greater innovation and better business results, says Leigh Higginbotham Butler, CEO at Akina Technologies, an AI platform and network designed for black women looking to improve their professional development.

“Big tech firms may say they’re still committed to creating workplaces where everyone has equal opportunities and can build successful careers, but dropping diversity hiring goals and removing DEI-specific language sends out the message that experiences are irrelevant, and this could narrow the talent pool,” adds Higginbotham Butler

“DEI is about fairness. It’s about ensuring that talent, hard work, and ambition – not privilege – determine who gets ahead,” she adds.