Report Finds Impact on Women Following US Companies' Cutback on DEI Initiatives
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Report Finds Impact on Women Following US Companies' Cutback on DEI Initiatives

By: GWL Staff | Thursday, 31 July 2025

  • 1 in 5 U.S. companies have scrapped DEI programs post-2024 elections.
  • Reduction in women in leadership and decline in hiring of women of color reported.
  • Survey reveals long-term harm to workplace culture, retention, and reputation.

 

A recent survey conducted by Resume.org, sampling from 965 US companies through Pollfish in July 2025, reveals that 20% of organizations eliminated their Diversity, Equity and Inclusion (DEI) programs after former President Donald Trump’s re-election. This strategic reversal had excessively negative effect on women, particularly women of color and it underlines the important role DEI plays in making gender equality and inclusive leadership.

Since the removal of DEI policies, nearly half (47%) of these companies reported a sharp decline in employees' morale. More alarmingly, 36% have experienced reduced retention rates among several employees, with 24% seeing fewer women advancing in leadership positions. The hiring of women of color fell 37% and even hiring of white women decreased by 13%. These numbers emphasize setback in gender diversity efforts and gender inclusion in the workplace.

In addition to the impact on women's career progression, 18% of organizations observed an increase in workplace discrimination and bias incidents. A quarter of companies reported damage to reputation, which risk reducing their position in the competitive global market

Kara Dennison, Head of career counseling at Resume.org, emphasized that DEI's elimination signals a deprioritization of inclusion, leading toxic cultures in the workplace, reduced psychological safety and weakened female leadership pipelines. “DEI initiatives are not merely political gestures but strategic business imperatives essential to attracting and retaining top female talent globally," Dennison said.

The survey also found that 74% of business leaders cited changes in the political climate as the main reason for cutting down programs, although many admit that these decisions have damaged organizational culture and progress towards gender equity.

For companies aimed at prospering in a diverse global market -oriented market, should employ effective DEI policies to support women's advancement, promoting inclusive leadership and protecting corporate reputation.

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