In 2025, 1 in 8 companies plan to eliminate or reduce their diversity, equity and inclusion programs due to political climate changes, economic pressures or a lack of measurable return on investment, according to a Jan. 21 report by Resume.org.
In a survey of 1,000 companies that had DEI programs in 2024, 65% said they’re maintaining the same budget, 22% are increasing their funding, 8% are reducing their budget, and 5% have eliminated their programs already.
About 11% of companies that have maintained or reduced DEI funding said they’re very or somewhat likely to eliminate DEI programs later in 2025. Among companies that don’t anticipate eliminating their programs in the next year, 8% said they’re likely to phase them out in the next four years.
“Many companies have faced budget cuts and may view DEI as non-essential, reallocating resources to more immediate profit-driven areas,” Irina Pichura, a career coach for Resume.org, said in a statement.
“Some companies also abandon DEI programs due to difficulties quantifying their impact, leading them to question their value,” Pichura said. “However, eliminating DEI programs can result in less inclusive workplace cultures and reduce psychological safety for underrepresented groups.”
Among companies with plans to reduce or eliminate DEI programs, leaders said political climate changes were the top factor, followed by economic pressures or budget constraints, a lack of measurable ROI, poor employee reception, a shift in business priorities and no need to appeal to DEI proponents anymore. More than half of managers also said DEI initiatives were implemented primarily for public relations purposes.
After reducing or eliminating DEI initiatives, 51% of companies have redirected funds to general operating expenses, and 40% are investing in artificial intelligence or technology initiatives. Beyond that, companies are using those funds for employee salaries or benefits, marketing and office space or facilities.
President Donald Trump has signed multiple executive orders to reverse DEI efforts in the federal workforce. The administration may take additional steps to undo more Biden-era DEI initiatives in coming weeks and months, including the U.S. Equal Employment Opportunity Commission’s workplace harassment guidance.
Several major companies are facing pressure to cease DEI efforts, and conservative think tank National Center for Public Policy Research plans to submit an anti-DEI proposal at Apple’s 2025 shareholders meeting. However, Apple has advised shareholders to vote against it.
Amazon is also shifting its DEI approach by unifying separate employee resource groups and focusing on inclusion more broadly. Although proposed changes remain vague, the company has already removed certain Black equity and LGBTQ+ rights sections from its website.
