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DEI in flux: 2025 marks a global reset

Story • 3rd Jun 2025 • 5 Min Read

DEI in flux: 2025 marks a global reset

Diversity#DEIB

Author: Gunja Sharan Gunja Sharan
105 Reads
The movement isn’t gone, but evolving in response to shifting priorities. While some countries and companies scale back under political and economic pressures, others use tech to drive inclusive practices.

Reimagined, redefined, and, in some corners, even dismantled. As we move through 2025, the global Diversity, Equity, and Inclusion (DEI) movement stands at a pivotal crossroads. Once a powerful force driving transformation in workplaces, DEI is now undergoing a dramatic shift.

In the US, President Donald Trump’s administration has led a sweeping overhaul. An executive order signed this year scrapped federal mandates for affirmative action among government contractors and centralised enforcement under one office, signaling a sharp pivot from past DEI commitments. The $37 billion Disadvantaged Business Enterprise programme is under fire, with the Justice Department challenging its constitutionality.

In the corporate world, major American companies are pulling back on DEI initiatives, citing mounting political pressure, tighter budgets, and uncertain ROI. Globally, the picture is more nuanced. While many companies continue to voice support for DEI in principle, their priorities are shifting.

And yet DEI isn’t gone completely. It's still here and still unavoidable, but it’s being reshaped by politics, economics, and performance metrics. Whether it’s a reset or a long-overdue reboot, the way companies define and deliver inclusion is changing fast. Take a look at how some countries are approaching DEI initiatives.

United States: DEI gets a federal overhaul

Trump hit the brakes on decades of diversity policy with a sweeping executive order that effectively gutted affirmative action and non-discrimination mandates for federal contractors. There would be neither any race- or gender-based targets, nor any DEI requirements baked into government contracts. The power to oversee anti-discrimination enforcement would be now tightly controlled by a single office at the Department of Labour — shutting out other agencies from interpreting or expanding protections.

Agencies were ordered to scrub DEI content from websites and cancel contracts tied to inclusion training or outreach programmes. Overnight, initiatives aimed at leveling the playing field were framed by the Trump administration as "ideological overreach".

The private sector hasn't been immune to the shift. Once champions of diversity, major players are now backpedaling — or at least keeping things quiet. IBM and McDonald’s, both previously vocal about diversity hiring goals, have quietly rolled back public DEI pledges, focusing instead on more general "talent development" goals. The list includes major companies, such as Amazon, and Walmart that reevaluated their DEI programmes. Amazon has wound down DEI policies after investigating their effectiveness, cutting back on DEI language on its website. 

Alphabet, Google's parent company, announced that it would no longer have aspirational goals for diversity, equity, and inclusion. Goldman Sachs removed diversity targets from its regulatory filings, backtracking on previous commitments to increase female and minority leadership by 2025.  

Meta shut down several of its affinity group leadership programmes, citing internal audits that questioned the measurable outcomes of those initiatives. OpenAI dissolved several internal DEI task forces and restructured hiring pipelines with a new focus on skills-based assessments.

Company statements cite political pressures, investor scrutiny, and unclear ROI on DEI efforts as reasons for the rollback. But critics argue it’s a retreat from corporate responsibility, timed with a growing conservative backlash.

So, what was once considered standard practice in American companies, from hiring protocols to curriculum design, is now being stripped down, reshaped, or outright removed. Whether you see it as a long-overdue correction or a dangerous rollback, 2025 is undeniably a turning point in how the US defines, and defends diversity and inclusion.

UK: Rebranding and strategic shifts

In the UK, some companies are rebranding DEI initiatives to avoid political scrutiny and backlash. Major companies, including Barclays and Rolls-Royce, are adjusting their approach to DEI by scaling back identity-specific initiatives and targets. This shift involves refining strategies to enhance talent pipelines and foster a more inclusive culture, but without relying on traditional affirmative action policies. Barclays, for example, is phasing out ethnicity and gender targets in some regions. 

Many companies are rebranding DEI initiatives under terms like ‘wellbeing’, ‘culture’, and ‘belonging’. This shift reflects a broader retreat from DEI commitments initially amplified after the Black Lives Matter movement.

Australia: Economic pressures and DEI reevaluation

In Australia, DEI has been a prominent focus across many sectors, especially in workplaces that view it as both a moral imperative and a smart business strategy. Many companies have implemented DEI programmes, recognising their value in boosting employee satisfaction, productivity, and retention. The broader legal and regulatory environment has also reinforced these efforts, promoting equal opportunity and respectful workplace practices.

However, a report by Best Lawyers, reveals a contrasting trend within the legal industry. Law firms are deprioritising DEI: just 57% support diverse hiring, fewer than 10% have full-time DEI officers, and most are hesitant to disclose diversity efforts. These numbers suggest a clear shift: under mounting economic pressure and rising client demands, law firms appear to be narrowing their focus to core legal expertise, with DEI and sustainability increasingly seen as secondary concerns.

In the near future, this shift may have implications for the rigour with which DEI is addressed in legal and regulatory matters. Can firms that sideline DEI within their own operations still handle it well as part of their own business?

Global trends: Data-driven strategies and accessibility

Across the globe, forward-looking companies are turning to technology to keep DEI efforts alive. AI and data analytics are being harnessed to uncover and address disparities in pay, promotion, and hiring. By tracking hiring patterns, promotions, and pay gaps, companies can spot and fix inequalities, set clear DEI goals, and measure progress in real time.

At the same time, there's a big push to make data more accessible across all levels of the business, not just for analysts or executives. The idea is simple: when more people have access to smart insights, decisions get better, faster, and more inclusive.

There's also growing momentum around accessibility and neurodiversity, with universal design, mental health support, and inclusive work environments gaining ground. More companies are redesigning office spaces with accessibility in mind, offering mental health support for neurodiverse employees, and making sure communication works for everyone.

All these are not always the traditional programmes and policies one might associate with DEI initiatives, and may not be reflected in corporate governance reports or marketing brochures. But they are an equally important part of inclusion. Public statements and sweeping gestures are one thing, but how businesses treat a diverse workforce in the privacy of the workspace is the real proof of concept.

Read More

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