Boeing has had a tumultuous year, marked by a series of setbacks including safety incidents, executive departures, and declining stock prices. Now, the company's decision to dismantle its DEI department has sparked further controversy. Sara Liang Bowen's departure as Boeing's head of DEI highlights the personal and professional toll of these decisions. In a heartfelt LinkedIn post, she highlighted the importance of human connection and the potential for positive change within organizations.

Boeing is not alone in scaling back DEI initiatives. In recent months, numerous tech giants and other major corporations, including Google, Microsoft, and Meta, have also made similar decisions, citing economic pressures and changing business priorities. This trend has led to significant backlash from employees, customers, and social media users, who argue that such moves undermine efforts to create more equitable and inclusive workplaces. Harley-Davidson, for example, faced significant criticism for its decision to cut DEI programmes.

Read more: Boeing eyes temporary layoffs as strike stalls operations, affecting thousands

While Elon Musk and other critics rail against DEI, many corporate leaders remain committed to DEI initiatives.

HR analyst Josh Bersin, in a recent podcast, revealed that discussions with over 30 companies show widespread concern about the 2024 election's impact. Many leaders are apprehensive, but he stressed that the issue is here to stay.

A recent study by Bridge Partners found that 72% of C-suite and HR leaders plan to increase their investment in DEI over the next two years. A Pew Research Center study reveals that a significant majority of workers believe that focusing on diversity, equity, and inclusion is a good thing, particularly among women.

A dive into the retreat from DEI

Over the past year, more than ten companies have halted their DEI initiatives, citing reasons like the US presidential elections, the Middle East conflict, and financial pressures.

Political polarization, particularly in the US, has made DEI programmes a target, with conservative lawmakers pushing for legislation to restrict them, claiming they are discriminatory and ineffective. This has led many companies to reassess their DEI commitments to mitigate legal and reputational risks.

Economic downturns have prompted companies to prioritize cost-cutting, with DEI initiatives often seen as non-essential and vulnerable to budget cuts.

A key challenge for DEI programmes is the lack of clear metrics to measure their impact, leaving their effectiveness uncertain. Additionally, many companies fail to integrate DEI into their core business strategies, treating them as isolated efforts rather than essential components of the overall business plan.

Consequences of scaling back DEI

DEI has become more than a value—it’s now a business standard. Recent insights from AIMM and the Cultural Inclusion Accelerator show that consumers, including Gen Z, Boomers, and LGBTQ+ groups, are primed to boycott brands that pull back on DEI, signalling that retreating from inclusivity could cost companies more than they realise.

Strategically, diversity is essential for innovation. Scaling back DEI threatens the flow of fresh ideas and hinders adaptability in competitive markets, leaving companies vulnerable to stagnation. DEI also drives workplace morale and retention; without it, companies risk low job satisfaction, high turnover, and a shrinking talent pool—particularly among underrepresented groups.

Reputational risks are even higher. Reducing DEI opens the door to consumer backlash, negative media coverage, and investor concerns, as today’s socially conscious consumers and stakeholders expect companies to uphold inclusive values.

Simply put, DEI is no longer optional—it’s a strategic advantage. Companies that scale back risk not only their talent and market position but also their credibility and long-term resilience.

DEI isn’t going anywhere, says Josh Bersin 

Firms with robust DEI programmes are better equipped to navigate challenges, attract top talent, and cater to diverse customer bases. For instance, McKinsey & Company's research highlights that companies with diverse gender and ethnic leadership teams experience significantly higher profitability.

The heightened awareness of discrimination and the potential legal consequences have driven organizations to implement policies that benefit marginalized groups. Scaling back DEI initiatives would be a strategic misstep, as it could lead to decreased innovation, lower employee morale, and tarnished brand reputation.

DEI is essential for businesses aiming for long-term success and should be woven into the core of corporate strategy—not treated as a box to check. When DEI initiatives stand alone, they risk becoming empty gestures, missing meaningful impact. DEI is not about quotas; it’s about valuing each individual’s unique contributions beyond labels.