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Walmart joins growing list of companies abandoning DEI after Trump election victory: how this could affect you

Walmart is the latest company to move away from DEI initiatives the company undertook after the police murder of George Floyd in 2020.

Mike BlakeREUTERS

Walmart, one of the world’s largest retailers, has confirmed that it will be moving away from DEI (Diversity, Equity, and Inclusion) initiatives. These programs were widely adopted by corporate America following the police murder of George Floyd and the subsequent uprisings and public outcry over the violent killing. While conservative activists have portrayed DEI as a “woke” effort to discriminate against white people, its core purpose is to promote safe and equitable workplaces and institutions that address racism and bias, fostering an environment where everyone feels valued. Now that Donald Trump will return to the White House, corporate America is looking to cozy up, and one easy way to do that is to move away from DEI initiatives.

Biases often go unchecked, and when held by those in positions of power, they can result in tangible harm. DEI initiatives were designed to reduce workplace discrimination, prevent employees from being passed over for jobs or promotions due to bias, and, in severe cases, mitigate harassment. These initiatives aimed to create healthier, more inclusive environments in workplaces where many people spend the majority of their time. However, some corporations have quietly confirmed they are discontinuing these programs. Instead of issuing public statements, they have confirmed the changes indirectly. The rise of conservative backlash, particularly following Donald Trump’s presidency, has contributed to the abandonment of DEI initiatives by some major companies.

For customers, there are not likely to be many impacts as there is little evidence to show that it was these initiatives that increased costs. Many of the initiatives were focused on improving the workplaces, which means that the people most likely to feel the difference are the workers.

Walmart reverses course

In June 2020, Walmart announced a series of changes related to “racial equity.” At the time, executives expressed “strong” and “overwhelming” support for the company’s stance on the issue and its commitment to action. Four years later, these promises appear hollow as the company reverses course. In a letter, Walmart CEO Doug McMillon stated that the company would leverage its market reach to “identify the overlaps in areas like minority supplier and marketplace seller development” to create greater opportunities for minority-owned businesses. However, Bloomberg News recently reported that Walmart will end this program and will no longer consider race or gender in its supplier selection process.

Other companies are similarly scaling back their DEI commitments. For example, Google and Meta (the parent company of Facebook and Instagram) have made substantial cuts to their DEI teams, while others, including Home Depot, DoorDash, and Tesla (owned by Elon Musk), have slashed DEI budgets by 50 percent or more.

John Deer’s announcement came this summer

The news from Walmart follows similar actions taken by other companies. This summer, John Deere, the agricultural equipment giant, announced that it would “no longer participate in or support external social or cultural awareness parades, festivals, or events” and would audit “all company-mandated training materials and policies to ensure the absence of socially motivated messages while being in compliance with federal, state, and local law.”

While the company’s statement is somewhat vague, it likely signals that John Deere will no longer sponsor events like Pride parades or include references to racism beyond what is legally required in employee training programs.

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