Several major US companies, including Citigroup and PepsiCo, have announced rollbacks of their diversity, equity, and inclusion (DEI) policies in response to mounting scrutiny from the new administration in Washington, D.C. The moves come amid a trend away from corporate-backed DEI initiatives following a 2023 US Supreme Court ruling and an executive order from President Donald Trump.
Citigroup CEO Jane Fraser announced that the bank would no longer require new hires to be selected from a diverse set of job applicants, while also renaming its existing diversity team as “talent management and engagement.” PepsiCo CEO Ramon Laguarta said the company would drop its DEI officer and “sunset” workforce representation goals, expanding its supplier base instead.
The companies join other prominent US businesses that have made similar retreats, including Meta, Walmart, McDonald’s, Lowe’s, Ford, Tractor Supply, John Deere, and Target. The changes reflect a shift away from corporate-backed DEI initiatives in response to the Trump-era executive order and court ruling.
Other big banks, such as Goldman Sachs and JPMorgan Chase, have also made adjustments to their DEI policies in recent months. Goldman Sachs dropped a requirement for its IPO clients to include women and minorities on their board of directors, while JPMorgan Chase removed almost all mentions of “diversity, equity, and inclusion” from its annual report.
The trend is likely driven by the changing legal landscape and increased scrutiny from activists and politicians. Anti-DEI activist Robby Starbuck claimed that PepsiCo responded to his plans to publish a story about the company’s policies by agreeing to drop its DEI initiatives.
Source: https://finance.yahoo.com/news/dei-retreat-widens-as-citigroup-and-pepsico-roll-back-diversity-policies-154956511.html