Major U.S. companies are rapidly scaling back diversity, equity, and inclusion (DEI) initiatives amid political pressure and legal challenges, with IBM and Constellation Brands becoming the latest to join the trend.
Key Developments
- IBM has shifted its supplier diversity program to focus on all small businesses—not just minority- or women-owned ones—and stopped linking executive pay to diversity hiring goals, citing “inherent tensions” in inclusion efforts.
- Constellation Brands (maker of Corona and Modelo) rebranded its DEI team as “inclusive culture” and will no longer participate in external diversity surveys.
- Other companies, including Disney, Bank of America, and Amazon, have removed DEI language from reports, rebranded programs, or dropped diversity hiring targets. Why the Backlash?
The rollbacks follow: - President Trump’s executive orders targeting DEI in federal contracts and private companies.
- Conservative legal challenges, including a Supreme Court ruling against affirmative action in college admissions.
- Pressure from activists like Robby Starbuck, who has led boycotts against “woke” corporations. Companies Holding Firm
- Some, like Costco, Apple, and Delta, continue supporting DEI, arguing it strengthens business. NFL Commissioner Roger Goodell said diversity hiring policies make the league “better.” Global Fallout
U.S. embassies have demanded foreign contractors comply with anti-DEI rules, sparking pushback from France and Belgium, which called the demands a potential violation of diplomatic norms. What’s Next?
With DEI becoming a political lightning rod, more companies may quietly abandon programs—or face scrutiny from regulators like the FCC, which has threatened investigations.
Will these changes stick—or will corporate America reverse course under a future administration? Let us know your thoughts in the comments.
