In Union County, South Carolina, where once-thriving cotton mills have vanished and fresh food is scarce, Elise Ashby has worked tirelessly since 2016 to bring farm-fresh produce to underserved communities. With limited funding, she relied on her own savings until receiving a $100,000 grant from the Walmart Foundation in 2023—part of a larger initiative supporting community-based nonprofits led by people of color.
“I cried a little bit,” Ashby recalled. “It felt like someone actually saw what we were doing.”
Just two years ago, corporate America was actively investing in Diversity, Equity, and Inclusion (DEI) programs, particularly in response to racial justice movements following George Floyd’s death in 2020. But now, many of those same companies are scaling back their commitments amid a broader backlash against DEI policies.
The Decline of Corporate DEI Initiatives
Walmart announced in November 2023 that it was shutting down its Center for Racial Equity, which had funded initiatives like Ashby’s. Other corporate giants, including Meta, Google, Goldman Sachs, and McDonald’s, have followed suit, either scaling back or completely restructuring their DEI programs.
The shift comes as a response to legal threats, social media backlash, and political pressure—particularly from the newly re-elected U.S. President, Donald Trump. Since returning to office in January 2025, Trump has aggressively moved to dismantle DEI programs across government agencies, universities, and private corporations, arguing for a return to “merit-based opportunity.”
Already, the Department of Veterans Affairs has closed its DEI offices, the Environmental Protection Agency has sidelined nearly 200 employees working on civil rights initiatives, and the top military general, a Black officer, was removed from his position—reportedly due to his involvement in DEI-related policies.
A Cultural and Legal Backlash
DEI programs, which trace their roots back to 1960s affirmative action policies, gained widespread corporate support in the early 2020s. However, opposition grew rapidly, with critics arguing that DEI initiatives were “divisive” and discriminatory toward white employees. The debate intensified after the 2023 Supreme Court ruling that banned race-based affirmative action in college admissions, raising concerns about the legal standing of corporate DEI policies.
High-profile conservative figures, social media influencers, and organizations have actively pressured companies to abandon “woke” initiatives. The fallout from the Bud Light controversy in 2023, after the brand partnered with a transgender influencer, became a turning point in the movement against corporate DEI.
Some companies, like Meta, explicitly cited the “changing legal and policy landscape” when announcing the cancellation of their DEI initiatives.
The Question of Effectiveness
Despite the backlash, experts argue that racial and gender disparities remain deeply entrenched. Studies have shown that Black and Hispanic job applicants receive fewer callbacks than their white counterparts. However, not all DEI programs have been effective—with some research indicating that mandatory diversity training can create resentment rather than progress.
“Many companies implemented DEI programs without clear, measurable goals,” said Siri Chilazi, a researcher at Harvard University. She emphasized that subtle systemic changes—like improving hiring criteria or performance evaluations—are often more effective than broad diversity training sessions.
The Rebranding of DEI
While some corporations are publicly distancing themselves from DEI, many are quietly rebranding their initiatives to avoid legal and political scrutiny.
For example:
- Walmart renamed its Chief Diversity Officer to Chief Belonging Officer.
- McDonald’s rebranded its Global DEI Center of Excellence as the Global Inclusion Team.
- Apple’s shareholders recently voted to continue their diversity initiatives, despite pressure to end them.
“DEI has become a controversial term,” said Michelle Jolivet, author of Is DEI Dead? “If I just remove that word, I can still do the same work.”
A Mixed Future
The rollback of DEI is already having real-world effects, particularly in higher education. After the Supreme Court ruling, Harvard Law School reported a significant drop in Black and Hispanic student enrollment—the lowest numbers since the 1960s. Some universities have canceled race-focused events, while others have dissolved student organizations for marginalized groups.
However, not all institutions are seeing a decline in diversity. Schools like Northwestern University and Dartmouth have actually increased their minority enrollment by shifting focus to socio-economic factors rather than race.
What Lies Ahead?
For community leaders like Elise Ashby, the future is uncertain. She worries that, without corporate support, initiatives benefiting marginalized communities will struggle to survive.
“Am I concerned about the future? Absolutely,” she said.
While the language around DEI may be changing, many experts believe its core principles will persist—albeit under different names and strategies. Whether rebranded as “inclusion,” “belonging,” or “equal opportunity”, the fight over corporate and government diversity efforts is far from over.