Critics of corporate diversity efforts emerge, even as initiatives falter
Companies’ diversity efforts have been dragged into the culture wars lately — but corporate commitments to those initiatives already were declining.
Under public pressure after George Floyd’s murder in 2020, companies around the world spent an estimated $7.5 billion on diversity, equity and inclusion programs that year, making vocal commitments to diversity and equitable treatment within their ranks. But since then, firms have been backpedaling.
A report from the workforce intelligence company Revelio Labs found that attrition rates for DEI roles have been outpacing those of non-DEI positions in more than 600 U.S. companies that laid off workers since late 2020 — and the attrition rates have increased in the past six months.
“It seems like companies are just shedding these DEI teams more and more,” said Ben Zweig, chief executive of Revelio.
Hiring of chief diversity officers declined 4.5 percent from 2021 to 2022, according to recent LinkedIn data, and some large employers cut positions. Amazon, Twitter, Wayfair, Nike and Intel are among big companies that slashed DEI jobs recently amid larger waves of layoffs.
In separate statements to The Washington Post, Amazon and Intel both said they remained “committed” to increasing diversity in their workforces. (Amazon founder Jeff Bezos owns The Post.) A Nike statement described DEI as a “top priority.”
But these commitments can sound hollow to people who have worked in the corporate DEI space.
Frankie — whom The Post is identifying by a nickname so that she can speak freely without backlash from potential employers — was laid off from a DEI recruiting position in March. She wasn’t surprised, because she’s seen firsthand how companies tend to back off these initiatives in economic downturns. She’s looking for another job but is not particularly hopeful about finding a new DEI position soon.
There’s a disconnection, Frankie said, between companies’ public statements on diversity and inclusivity, and their willingness to follow through. Years of working in DEI, she said, showed her that even well-intentioned companies often hesitate to invest seriously in areas such as employee resource groups, recruiting and onboarding improvements, and DEI training and certification.
“Companies only want to talk about it or do the work when it’s profitable or when it looks good for them to do so,” she said.
Despite the recent reductions, DEI has been attacked by conservative critics recently. At least a dozen states are considering legislation that would attack DEI spending and overhaul hiring initiatives in higher education.
Corporations that conservatives consider “woke” are increasingly a target of the ire of prominent Republicans, including Florida Gov. Ron DeSantis, who recently introduced legislation that would prohibit Florida’s state and local governments from using investment strategies that consider environmental, social and governance (ESG) factors. U.S. Rep. James Comer, R-Ky., the chairman of the House Oversight Committee, suggested that Silicon Valley Bank’s high-profile collapse occurred because that institution was “one of the most woke banks” — an assertion that has been repeated by many rightwing figures rallying against ESG. (DEI is generally included under the “social” category in ESG.)
“It seems like companies are just shedding these DEI teams more and more.” BEN ZWEIG, CHIEF EXECUTIVE OF REVELIO, ON DIVERSITY, EQUITY AND INCLUSION PROGRAMS