The exodus from corporate diversity, equity, and inclusion (DEI) programs continues to gain momentum as major corporations like Citigroup (C) and PepsiCo (PEP) scale back their initiatives. This shift comes amidst increased government scrutiny and a changing political landscape.
Citigroup CEO Jane Fraser informed employees in a memo that the banking giant will no longer mandate diverse candidate slates for new hires. The company also renamed its “diversity, equity and inclusion and talent management” team to “talent management and engagement.” Fraser acknowledged the rapidly evolving environment as a key factor in this decision.
Similarly, PepsiCo CEO Ramon Laguarta announced the elimination of the dedicated DEI officer role, the phasing out of workforce representation goals, and an expansion of their supplier base. Laguarta emphasized that PepsiCo remains committed to fostering an inclusive workplace and will introduce a new “inclusion for growth” strategy aligned with the company’s historical values. He reassured stakeholders that PepsiCo will continue to “hire and promote the best talent.”
Anti-DEI activist Robby Starbuck claimed on X (formerly Twitter) that PepsiCo’s decision was a direct response to his intent to expose the company’s allegedly “woke” policies.
These recent developments place Citigroup and PepsiCo alongside other prominent US companies, including Meta (META), Walmart (WMT), McDonald’s (MCD), Lowe’s (LOW), Ford (F), Tractor Supply (TSCO), John Deere, and Target (TGT), that have already retreated from DEI initiatives.
This broader trend stems from the 2023 Supreme Court ruling in Students for Fair Admissions v. President and Fellows of Harvard College and a subsequent executive order by President Donald Trump. The executive order mandated the termination of federal DEI programs and directed agencies to address perceived “illegal private sector DEI actions.” This confluence of legal and political pressures has significantly reshaped the corporate landscape for DEI programs. The long-term impact of these changes on workplace diversity and inclusion remains to be seen.
