Google (NASDAQ:GOOGL) has decided to discontinue its Diversity, Equity, and Inclusion (DEI) hiring and representation goals, citing legal and regulatory changes in the U.S. The company informed employees about this shift through a memo that pointed to evolving federal regulations, court rulings, and adjustments made by other corporations. This decision reflects broader corporate responses to recent legal scrutiny of DEI practices.
Several companies have been reassessing their DEI initiatives following a U.S. Supreme Court ruling that invalidated race-based affirmative action in university admissions, prompting a reevaluation of similar policies in the corporate sector. The legal landscape has also been influenced by an executive order signed by Donald Trump, which prohibits federal contractors from engaging in what it describes as “illegal DEI” practices. These developments have led many businesses to reconsider their DEI commitments and strategies.
What prompted Google to change its DEI policies?
Google’s decision aligns with its status as a federal contractor, requiring compliance with legal and executive orders that impact diversity-related hiring practices. In a memo to employees, Chief People Officer Fiona Cicconi explained that the company is adjusting its DEI programs in response to recent legal decisions and government policies. Google had previously set ambitious diversity targets, including a goal to increase leadership representation of underrepresented groups by 30% by 2025, a target it reported achieving in 2023.
How is Google adjusting its diversity commitments?
While Google will no longer set aspirational DEI hiring goals, the company stated that it remains committed to fostering an inclusive workplace. Cicconi emphasized that the company will continue investing in workforce initiatives across various regions but will not maintain specific hiring objectives related to diversity.
Google’s recent 10K annual report also reflects this policy shift. In its 2023 filing, the company explicitly expressed strong support for DEI, stating that it aims to maintain a workforce that represents its user base. However, this language was removed in the 2024 report, signaling a formal departure from previous commitments.
Cicconi reiterated the company’s position, stating:
“We’ve always been committed to creating a workplace where we hire the best people wherever we operate, create an environment where everyone can thrive, and treat everyone fairly. That’s exactly what you can expect to see going forward.”
Other major corporations have also altered their DEI approaches in response to legal and political shifts. Companies operating as federal contractors, in particular, have faced increased scrutiny regarding compliance with recent executive orders and legal rulings. This trend suggests a broader reevaluation of corporate diversity strategies across industries.
The shift in Google’s DEI stance reflects a changing corporate and legal environment where affirmative diversity hiring goals have come under examination. Companies navigating this landscape must balance inclusivity with evolving legal frameworks. Businesses that have traditionally emphasized diversity initiatives may now focus on broader inclusion strategies without defined hiring targets. For organizations operating as federal contractors, compliance with executive policies will likely continue shaping corporate approaches to workforce representation. The ongoing legal and regulatory shifts indicate that DEI practices will remain an evolving topic in corporate policy discussions.
