Trump’s DEI crackdown forces major corporations to abandon diversity programs

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President Trump’s dismantling of diversity, equity, and inclusion (DEI) programs in the federal government has triggered a widespread corporate retreat from these initiatives across the private sector. Companies are scrambling to eliminate or rebrand their DEI programs to avoid federal scrutiny and potential retribution from the Trump administration.

Major corporations have taken swift action since Mr. Trump’s Day 1 executive order. Citigroup dropped its “aspirational representation goals” and renamed its diversity team to “Talent Management and Engagement.” Paramount Global announced it would no longer set numerical goals related to race, ethnicity, and gender in hiring. PepsiCo shifted its chief DEI officer into a “broader role,” while Major League Baseball removed diversity references from its careers page.

The corporate exodus accelerated after the president’s Justice Department created the Civil Rights Fraud Initiative in May, targeting entities receiving federal funds that engage in what the administration considers discriminatory practices. Attorney General Pam Bondi warned that organizations promoting “divisive DEI policies” risk losing federal funding access.

Telecommunications companies seeking merger approvals have proactively assured the government of DEI changes. T-Mobile eliminated specific targets for diverse spending in procurement policies before the FCC approved its Lumos acquisition. Similarly, Verizon agreed to roll back DEI initiatives as part of its $20 billion Frontier Communications merger approval.

Several law firms also agreed to abandon DEI practices in April to avoid punishment from Mr. Trump, who accused them of weaponizing the legal system against him. Transportation Secretary Sean Duffy warned road contractors that DEI-based hiring policies “presumptively violate federal law.”

The movement away from DEI began before President Trump took office, particularly after the Supreme Court struck down affirmative action in college admissions in 2023. However, experts say the corporate retreat “went into high gear” after Trump’s election and executive orders.

Companies find themselves caught between complying with Mr. Trump’s directives and avoiding backlash from diversity supporters. McDonald’s faced a week-long boycott after announcing changes to its DEI program, though it maintained its “commitment to inclusion remains steadfast.”

An NBC News poll found Americans divided on DEI programs, with 49% supporting elimination due to concerns about workplace divisions, while 48% favored continuation for promoting fairness and innovation. The Trump administration is also investigating universities, including the University of California, for potentially discriminatory hiring practices under diversity initiatives.

Read more: Trump’s mission to end DEI spurs companies to retreat from woke corporate culture