Meta ends diversity programs, joining McDonald’s, Walmart and other major companies to back off DEI

A look at DEI’s impact on businesses and education

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Meta is ending its key diversity, equity and inclusion programs, joining other corporate giants like Ford, McDonald’s and Walmart that have pulled the plug on their DEI initiatives. 

Meta’s move comes three days after the technology company said it would stop third-party fact-checking of content on Facebook, Instagram and other social media platforms. Axios was the first to report that Meta is terminating DEI programs geared to hiring, training and choosing suppliers, citing an internal employee memo.

A Meta spokesperson confirmed to CBS News that it was eliminating its DEI efforts. 

In explaining the policy shift, Janelle Gale, vice president of human resources at Meta, said the “legal and policy landscape surrounding diversity, equity and inclusion efforts in the United States is changing,” 

The retreat from DEI policies by Meta and others follows a 2023 Supreme Court decision banning affirmative action in college admissions, as well as pressure from conservatives political activists. Other large companies to unwind their DEI programs include motorcycle maker Harley-Davidson, hardware chain Lowe’s, and farm equipment manufacturers John Deere and actor Supply. 

More recently, the shift away from DEI has coincided with President-elect Donald Trump’s startling political comeback. 

“Many global businesses will be using the second Trump presidency to finally kill off the DEI agenda, if they haven’t done so already,” Daniel Snell, co-founder of Arrival, a UK-based consulting firm focused on corporate leadership and culture, told CBS MoneyWatch in an email. “Those attempting to curry favor with Trump are doing it publicly, while other organizations, not wishing to suffer any potential public backlash or fallout, will do so quietly and over time.”

Under fire by “anti-woke” factions that have targeted companies, universities and other organizations in court and on social media, a number of corporations have backtracked on diversity efforts that intensified after the May 2020 murder of George Floyd sparked the largest racial justice protests in the U.S. since the civil rights movement.

Some corporate leaders have also questioned the value of diversity and its contribution to a company’s bottom line, with DEI “seen by many leaders as distracting to business performance and growth,” Snell said. 

DEI defenders

Other companies, including Apple, Costco and Target, continue to maintain and defend their DEI policies. 

Costco’s board is recommending that shareholders vote against proposal to dismantle its DEI program ahead of January 23 investor meeting amid calls by activists such as Robby Starbuck urging boycotts and membership cancellations of the warehouse club. 

“Among other things, a diverse group of employees helps bring orginality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” the retailer stated. 

The proposal, submitted by the National Center for Public Policy Research, a conservative think tank, argues that DEI poses litigation, reputational and financial risks to the company, and therefore to shareholders. 

Jeff Raikes, a Costco board member and proponent of DEI, has touted the economic benefits of diverse workplaces, posting on social media in November that “attacks on DEI aren’t just bad for business — they hurt our economy. A diverse workforce drives innovation, expands markets and fuels growth.”

Target, for instance, is defending against itself in court against a conservative advocacy group’s lawsuit claiming the retailer misled investors about the financial risks of its DEI practices.