Corporate America is sharply reducing diversity, equity, and inclusion (DEI) programs as executive leaders push back on what they call “excessive” practices and prioritize merit-based hiring. The shift comes amid federal policy changes under President Trump and growing legal and market scrutiny of DEI frameworks.
CEO Jennifer Sey of XX-XY Athletics said many executive teams are “relieved to abandon these programs,” calling DEI training and hiring practices distracting from core business goals and fiduciary responsibilities. Sey told Fox that companies are refocusing on hiring based on merit rather than demographic criteria, which she described as harmful to performance.
The retreat from DEI language and practices has been documented across major company communications. Industry analysts reported a steep drop in the use of the term “DEI” in corporate filings and public materials. Some corporations are not eliminating inclusion efforts outright but are reframing or reducing emphasis on specific DEI metrics in public disclosures.
This corporate trend has been reinforced by federal actions. On the first day of his second term, President Trump signed an executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” directing government agencies to combat private-sector DEI preferences, mandates, and policies. That move signaled a policy environment less hospitable to DEI programs and aligned with calls for merit-focused hiring.
Legal and regulatory pressures also weigh on DEI initiatives. Some employers face heightened scrutiny or federal probe risks over alleged discriminatory practices within DEI frameworks, prompting reassessment of policies that explicitly prioritize certain demographic groups.
In financial services, Goldman Sachs agreed to remove explicit race, gender, and LGBTQ+ criteria from its board-candidate selection process, a significant rollback of formal diversity standards after pressure from conservative shareholders. The bank will now emphasize broader professional experience and viewpoints.
The trend extends beyond Wall Street. Data show a pronounced corporate pullback from formal DEI reporting, with far fewer Fortune 500 companies submitting diversity policy disclosures for evaluation, indicating a quiet industry shift.
This move away from DEI is not uniform. Some companies rebrand their programs rather than abandon inclusive workplace efforts entirely, and others still affirm commitments to diversity goals. But the overall pattern reflects business leaders reassessing previous corporate frameworks amid political change and shareholder pressure.
