Walmart, the largest private employer in the United States, is scaling back its diversity, equity, and inclusion (DEI) initiatives in response to right-wing pressure, marking a significant shift that may influence corporate America. The company announced on Monday that it is ending its racial equity training programs for employees and reevaluating efforts to promote supplier diversity. Walmart had previously focused on increasing the number of suppliers who are at least 51% minority-owned or managed by women, veterans, or LGBTQ individuals.
Additionally, the company is reviewing its financial support for Pride events and other related causes, and it will be monitoring its online marketplace to remove products related to sexuality or gender identity that are marketed to children. Walmart also revealed it would not extend its five-year, $100 million Center for Racial Equity, a philanthropic initiative launched in 2020 aimed at addressing racial disparities in areas like education, health, and criminal justice.
DEI programs typically encompass a range of efforts, such as employee training, recruitment practices, and resource networks designed to encourage representation across different races, genders, and backgrounds. Walmart’s decision is part of a broader trend where companies, facing mounting political and legal pressure, are reassessing or retracting their DEI commitments.
Although it’s unclear how these changes will affect Walmart’s workforce of 1.6 million employees—over half of whom are people of color—this shift reflects a larger retreat from diversity programs that started in recent years. Walmart stated in a press release, “We are willing to change alongside our associates and customers who represent all of America… Every decision comes from a place of wanting to foster a sense of belonging.”
Conservative activist Robby Starbuck, who has campaigned against corporate diversity programs, took credit for influencing Walmart’s actions, declaring it a “big win” for his movement. Walmart’s move comes alongside other companies, such as Harley-Davidson, John Deere, and Tractor Supply Co., that have scaled back their DEI efforts, support for LGBTQ events, and climate change policies.
The retreat from DEI programs follows a period of intense focus on such initiatives, particularly after the racial justice protests of 2020 in response to George Floyd’s death. That year, companies invested heavily in DEI, spending an estimated $7.5 billion on related programs. However, in recent years, backlash from legal challenges, political pressure, and boycotts—such as those directed at Bud Light after its partnership with transgender influencer Dylan Mulvaney—has caused many companies to reconsider these efforts.
This shift away from DEI is further fueled by political developments, including the 2023 Supreme Court ruling that barred race-based college admissions, which has led to lawsuits targeting diversity programs across various sectors. Experts suggest that the election of Donald Trump may have accelerated this trend, providing business leaders with an easier path to scale back diversity efforts.
Despite these changes, experts caution that companies may face internal challenges as they reduce their DEI commitments. Research from Boston Consulting Group shows that DEI initiatives can boost employee morale and retention, meaning companies that abandon diversity programs could risk alienating their workforce and hurting talent retention. “Employees are going to insist and demand employers do something,” said Shaun Harper, a professor at the University of Southern California. “Those employers are going to be woefully underprepared to respond.
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