Major companies in the U.S. are backing out of diversity, equity, and inclusion efforts, with Walmart being among the most recent to join the chorus amid mounting pressure from conservatives. Many proponents of DEI argue that the effort corrects historical injustices and systemic inequities. However, conservatives say that it promotes division instead, leading DEI initiatives to be subject to attacks by conservatives and state legislatures across the U.S.
The phenomenon also spread into the private sector, where major companies followed suit after the U.S. prohibited affirmative action in college admissions in July 2023. Several companies faced and lost lawsuits due to their DEI policies. Walmart, the top employer in America with over 1.6 million employees and a market cap of $800 billion, announced on Monday that it's stepping away from DEI efforts.
Michigan-born Ford Motor Company announced in August that it was rolling back DEI efforts. According to a memo leaked by Starbuck, the Fortune 500 company also pulled out of its participation in the HRC Corporate Equality Index and "best places to work" lists. The company added that they do not "utilize hiring quotas or tie compensation to the achievement of specific diversity goals.