Microsoft Quietly Lays Off DEI Team Amid Backlash

In 2020, the murder of George Floyd by a police officer sparked widespread awareness of racial inequities in America. This led many large companies to adopt diversity, equity, and inclusion (DEI) initiatives to promote workplace opportunities for people from various backgrounds.

However, recent backlash from consumers has caused some companies to pull back on these efforts. Microsoft is the latest company to do so, having quietly laid off its DEI team, according to a report from Business Insider.

The team, whose size is unknown, was let go on July 1 due to "changing business needs." Internal communications revealed that a team leader expressed dissatisfaction with the decision, stating, "True systems-change work associated with DEI programs everywhere are no longer business critical or smart as they were in 2020."

Microsoft's move comes after it launched a Racial Equity Initiative in 2020 following George Floyd's death. The company had pledged $150 million to enhance its culture of inclusion, aiming to double the number of Black and Hispanic leaders by 2025. Other major companies like Apple, Meta, and Amazon also introduced similar DEI initiatives that year, leading to a surge in DEI job postings.

Despite the layoffs, Microsoft insisted in a statement to Insider that its DEI commitments "remain unchanged." However, the company faced significant backlash earlier this year when a viral tweet highlighted a page from its 2023 Global Diversity & Inclusion report. The report indicated that Microsoft was addressing racial pay disparities by paying white employees less than their counterparts. Tesla CEO Elon Musk questioned the legality of this practice, drawing more attention and criticism toward Microsoft.

Microsoft is not alone in scaling back DEI efforts. Earlier this month, Tractor Supply cut its DEI initiatives and roles following criticism from conservative consumers who threatened to boycott the company over its "woke priorities."

"We work hard to live up to our Mission and Values every day and represent the values of the communities and customers we serve," Tractor Supply stated. "We have heard from customers that we disappointed them. We have taken this feedback to heart."

DEI initiatives are declining across corporate America. Companies like Zoom, Tesla, and Home Depot have also reduced their DEI teams through layoffs. According to data from Revelio Labs, DEI jobs decreased by 5% in 2023 and have fallen 8% so far in 2024, as reported by The Washington Post.