bye-bye DEI?

how (and why) big tech is changing its stance on DEI

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Amber Rhodes & Dillon Young
February 07, 2025 • Est. Reading Time: 7 minutes

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TL;DR

  • Big Tech companies are walking back DEI initiatives. What’s behind it?

  • Haven’t you heard?! Somebody figured out customer retention!

  • Fowl news! This restaurant is cracking down on surging egg prices.

Let's talk shop 🔧

only if it’s a good thing!!

What’s going on with DEI in tech?

You may have noticed an uptick in conversations around DEI (diversity, equity, and inclusion) in recent months, largely driven by the new Trump administration and its priorities.

Since the end of last year, the following Big Tech companies have pulled back or abandoned their DEI initiatives:

  • Meta

  • Amazon

  • Google

On the flip side, big US firms Apple and Microsoft are standing by their DEI programs.

What’s behind the DEI divide in the tech industry?

First, let’s talk about why DEI became a focus for tech companies.

In 2020, after the murder of George Floyd sparked a larger debate about race in the US, many big businesses read the room and doubled down on pledges to make their companies reflect their customer bases. 

Why are companies ditching DEI in 2025?

Nothing happens in vacuum, so we’d be remiss if we didn’t mention that the current US administration is extremely critical of “DEI” as a concept, going so far as to issue executive orders ending DEI in federal offices and for federal contractors and subcontractors.

These new orders from POTUS have some CEOs shaking in their boots. Take this excerpt for example:

“...each agency shall identify up to nine potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of 500 million dollars or more, State and local bar and medical associations, and institutions of higher education with endowments over 1 billion dollars;

(iv)   Other strategies to encourage the private sector to end illegal DEI discrimination and preferences and comply with all Federal civil-rights laws;

(v)    Litigation that would be potentially appropriate for Federal lawsuits, intervention, or statements of interest; and

(vi)   Potential regulatory action and sub-regulatory guidance.

So it’s no wonder that some companies are opting to take proactive steps to avoid being targeted. 

Some still stand by their diversity initiatives

Chuck Robbins, CEO at Cisco, recently defended the company’s DEI initiatives, arguing that the pendulum might be swinging too hard in one direction, and businesses need to find the equilibrium. 

“You cannot argue with the fact that a diverse workforce is better. There's too much business value…”

Why should you care?

If the past few months are any indication, people in the tech industry can expect to see a push and pull between defending and abandoning DEI initiatives. This could impact overall hiring and firing in 2025 and beyond. 

And for those who prefer to work at companies with strong DEI commitments, you may notice some unwelcome changes. 

🖥️ What else is happening in tech?

  • Broken trust 💔 Teens aged 13-18 don’t buy promises from legacy Big Tech companies. 

  • Workday is set to let go of 8.5% of its workforce (1,750 positions) according to a recent SEC filing.

  • Will AI agents pave the way for the first one-person unicorn tech company?

They figured it out.

Churn: solved

The guys dig into how one company solved their churn issues. It’s not how you think.

Learn more →

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Let’s dish 🤭

same

I thought this was a Waffle Home :( 

In case you haven’t heard, I hate to break the news that Waffle House is charging $.50 more for menu items with eggs.

How did we get here?

A bird flu outbreak has caused a nationwide egg shortage, leaving suppliers and consumers scrambling to adjust – including America’s favorite diner (personal opinion) and home to a (not?) surprising number of fights.

As a result, Waffle House customers will have to pay a $.50 surcharge per egg for the foreseeable future. 

Another breakfast icon, Cracker Barrel, called out the charges saying “A surcharge on eggs? Well, there’s nothing hospitable about that.”

That’s all, yolks. 🍳

🫖 What's the tea?

  • A new bill proposed in California would require companies to help prevent children from thinking of chatbots as people. 

  • Elon Musk and a cadre of Silicon Valley young tech bros made waves this past week after getting unprecedented access to federal government systems.

  • Someone stole 100,000 eggs in Pennsylvania and police haven’t …cracked… the case yet.

See you next week! 👋

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