The retreat from corporate diversity programs widened this week as Citigroup (C) and PepsiCo (PEP) announced rollbacks of their DEI policies amid mounting scrutiny from a new administration in Washington, D.C.
At Citigroup, CEO Jane Fraser announced in a memo to company employees that the New York banking giant would no longer require new hires to be selected from a diverse set of job applicants.
She also said that an existing “diversity, equity and inclusion and talent management” team would now be known as “talent management and engagement.”
“It is important to note that we’re living in an environment where things are changing quickly,” Fraser said.
PepsiCo, the beverage giant, said in its own memo from CEO Ramon Laguarta that it will no longer have a DEI officer dedicated specifically to such issues, will “sunset” DEI workforce representation goals, and expand its supplier base.
The company, he added, will be announcing a new “inclusion for growth” strategy that is “in keeping with our company’s deep history of building an inclusive and respectful workplace culture.”
“As we have always done, we will continue to hire and promote the best talent, ensuring we reflect the skills and perspectives needed to succeed in a competitive market.”
Anti-DEI activist Robby Starbuck said in a post on X that PepsiCo responded to his plans to publish a story about what he called the company’s “woke” policies by agreeing to drop the DEI initiatives.
The two companies join other prominent US businesses that have made similar retreats, including Meta (META), Walmart (WMT), McDonald’s (MCD), Lowe’s (LOW), Ford (F), Tractor Supply (TSCO), John Deere, and Target (TGT).
The changes reflect a trend away from corporate-backed DEI that followed a 2023 US Supreme Court ruling, Students for Fair Admissions v. President and Fellows of Harvard College, and an executive order from President Donald Trump ending federal DEI programs and ordering agencies to “combat illegal private sector DEI actions.”
