Survey: Corporate DEI Rollback in US Hits 20% of Firms

In Short

• DEI took a hard hit since the 2024 US presidential election.
• There were fewer women in leadership roles in 24% of organisations.
• According to certain business circles, the workplace has got worse, with low employee morale and a growing sense of alienation.

A recent survey indicates that since Trump's victory in the 2024 election, there has been a noticeable change in the way businesses handle diversity, equity, and inclusion (DEI).

The survey conducted by Resume.org, which solicited responses from 965 companies and was carried out via Pollfish in July 2025, noted that 1 in 5 companies have completely done away with DEI programmes since the election.

About 47% of companies reported a drop in staff morale due to scrapping DEI rules, which resulted in a decrease in motivation and a feeling of disengagement.

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Apart from that, 36% said it is difficult to retain diverse employees, while 35% now scrambling to attract diverse talent, meaning removing or restricting DEI is having a direct impact on how inclusive and appealing these workplaces are.

Ending DEI has also dealt a heavy blow to the reputations of 24% of companies. Meanwhile, 18% of businesses saw an uptick in workplace discrimination and bias, indicating a lack of inclusiveness and safety at work.

24% of firms said they noticed a reduction in women's representation in leadership roles.

A respondent lamented and said, "We are worse off as a company and our place in society since dropping the DEI policy."

57% of businesses are now hiring fewer people from underrepresented groups, 37% reported a drop in recruiting women of colour, and 13% said fewer white women were being hired.

Kara Dennison, Head of career advising at Resume.org, said: "DEI fosters belonging and psychological safety, which are critical to employee engagement and loyalty. Without it, trust erodes and turnover increases.

"Toxic culture weakens future leadership and puts both reputation and performance at risk."

Scaling back of DEI initiatives, by and large, is attributed to the changing political climate, said 74% of business leaders. In the meantime, some also opined that DEI actions were ineffective, divisive, or performative.

Also Read: Time to Recommit to DEI: Brands Must Lead with Purpose

On the flipside, many expressed regret after noticing a drop in employee morale, reputational damage, and a reversal of progress made toward a safer and more inclusive workplace.

“They can help attract top talent, foster inclusive leadership, and boost retention, especially among younger and more diverse employees. Companies that abandon DEI risk reputational harm, disengagement, and an inability to adapt to an increasingly global, values-driven marketplace," Dennison concludes.

Ends/

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Source: Women's Agenda