Walmart ends DEI programs after conservative pressure
ARKANSAS, UNITED STATES — Walmart, the world’s largest retailer, has announced significant changes to its diversity, equity, and inclusion (DEI) initiatives.
This decision, influenced by pressure from conservative activists, marks a major retreat from the company’s previous commitments to DEI.
Corporate strategy shift
The retail giant will discontinue considering race and gender in supplier contracts and stop collecting demographic data for financing eligibility. The company has also decided to cease using the term “DEI” in official communications, instead focusing on fostering a sense of “belonging.”
This decision follows conversations with conservative activist Robby Starbuck, who had threatened a customer boycott ahead of Black Friday. The company’s shares responded positively, jumping 2% following the announcement.
Workforce impact and demographics
Currently, people of color represent approximately 51% of Walmart’s U.S. workforce, with women and people of color making up significant portions of new hires. Among recent U.S. recruits, 49% were women, and 59% were people of color.
Shifting public sentiment
The timing of Walmart’s decision aligns with evolving public attitudes toward DEI initiatives. A recent Pew Research Center survey reveals that workers’ views on DEI have become more negative since last year. The percentage of workers viewing DEI focus as positive has decreased from 56% to 52%, while those seeing it as negative increased by 5 percentage points.
The survey also found that 19% of workers now believe their companies pay too much attention to DEI, up from 14% in the previous year. This shift in sentiment is particularly pronounced among Republican workers, with 42% now viewing DEI efforts negatively, compared to 30% last year.
John Furner, CEO of Walmart U.S., addressed the changes on CBS Mornings, stating, “We will continue to do the things that we can do to ensure that small suppliers have a path to be successful,” notably avoiding mention of specific diversity metrics.
Conservative influence on corporate decisions
The move by Walmart is seen as part of a broader trend where companies are influenced by political and public pressures regarding their internal policies. Walmart joins other major companies like Lowe’s, Boeing, and Deere & Co. in reconsidering their DEI commitments.
The decision comes in the wake of last year’s Supreme Court ruling on affirmative action in college admissions, which has prompted many companies to reevaluate their diversity programs.
