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Meta and Amazon Scale Back Diversity Programs Ahead of Trump’s Inauguration

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Meta Platforms and Amazon have decided to scale back their diversity, equity, and inclusion (DEI) programs ahead of the upcoming U.S. presidential inauguration, with the return of Donald Trump to office intensifying conservative opposition to such initiatives.

Both companies, which had previously ramped up their diversity efforts in response to protests following the police killings of George Floyd and other Black Americans in 2020, are now adjusting their policies in light of a changing legal and political landscape. Meta is halting its DEI programs, which included initiatives focused on hiring, training, and selecting suppliers. The decision was shared with employees in an internal memo on Friday and follows a series of actions that have attracted support from conservative circles. In the past two weeks, Meta has dismantled its U.S. fact-checking program, appointed Republican Joel Kaplan as its Chief Global Affairs Officer, and added UFC CEO Dana White—a close associate of Trump—to its board. The company also made headlines by contributing $1 million to Trump’s inaugural fund in December, signaling a shift in its political positioning.

Similarly, Amazon has begun winding down its diversity-related programs and materials, with plans to complete this process by the end of 2024. The decision was outlined in a memo seen by Reuters, which highlighted the company’s intention to phase out what it considered “outdated” programs on representation and inclusion.

The conservative backlash against DEI programs has been emboldened by legal developments, including a 2023 U.S. Supreme Court ruling that struck down affirmative action in university admissions. Critics, including figures like Elon Musk, have targeted DEI initiatives, accusing them of hindering business responses to crises, such as the wildfires in Los Angeles, despite lacking evidence to support these claims.

Janelle Gale, Meta’s Vice President of Human Resources, acknowledged in the memo that the legal and policy environment surrounding DEI efforts is evolving. She pointed to recent rulings, including a decision by a U.S. appeals court in December that blocked Nasdaq from enforcing diversity requirements for corporate boards. Gale also noted that the term “DEI” has become contentious, with some viewing it as promoting preferential treatment for certain groups.

As part of its restructuring, Meta will no longer have a dedicated team for DEI efforts. Chief Diversity Officer Maxine Williams will transition to a new role focused on accessibility and engagement, marking a significant shift in the company’s approach to diversity initiatives.

 

Costco Defends DEI Initiatives Amid Conservative Backlash

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Costco has taken a firm stance in support of its diversity, equity, and inclusion (DEI) efforts, pushing back against activist shareholders advocating for the dismantling of these policies. While companies like Walmart, John Deere, and Tractor Supply have shifted or scaled back their DEI initiatives, Costco remains committed, emphasizing the value DEI brings to its unique shopping experience.

The warehouse retailer’s board of directors unanimously recommended that shareholders reject a proposal from the National Center for Public Policy Research (NCPPR), a conservative think tank. The proposal called for Costco to issue a report on the financial risks of its DEI policies, alleging potential “illegal discrimination” against employees who are white, Asian, male, or straight.

Costco defended its DEI practices, stating they play a vital role in attracting and retaining diverse talent, enhancing merchandise originality, and fostering a shopping environment that reflects its members’ diversity. “A diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” the company explained in a proxy statement.

The retailer also highlighted its support for minority-focused organizations like the Thurgood Marshall College Fund and its supplier program, which collaborates with small and diverse businesses. Costco argued that NCPPR’s proposal disguised an anti-diversity agenda under the pretense of mitigating risk, stating, “The proponent’s broader agenda is not reducing risk for the company but abolition of diversity initiatives.”

Costco’s defense comes as DEI policies face mounting criticism from conservative groups, legal challenges, and political shifts. Some companies have adjusted their language—substituting terms like “DEI” with “inclusion” or “belonging”—to deflect pressure, while others have downplayed their DEI efforts compared to the heightened focus in 2020 and 2021.

Despite this environment, Costco has positioned itself as a progressive employer, known for paying some of the highest wages in retail. The company’s commitment to DEI, it says, reflects its belief in fair and legal practices that benefit its employees, customers, and shareholders alike.