Walmart, the world's largest retailer, announced plans to phase out several diversity, equity, and inclusion (DEI) initiatives as political and social pressure mounts from conservative groups. The changes include ending racial equity training programs, reevaluating supplier diversity efforts, and discontinuing funding for Pride events and merchandise. Additionally, the company will not renew its Center for Racial Equity, a $100 million initiative launched in 2020 to address systemic disparities in education, health, and criminal justice.
In a statement, Walmart emphasized its commitment to evolving alongside its employees and customers. "We've been on a journey and know we aren't perfect, but every decision comes from a place of wanting to foster a sense of belonging," the company said. Critics of the rollback warn it could undermine progress in workforce diversity, especially at a company that employs 1.6 million U.S. workers, with more than half of hourly employees and 42% of management identifying as people of color.
The decision comes amid escalating backlash from conservative activists. Robby Starbuck, a prominent critic of DEI policies, claimed credit for influencing Walmart's shift, calling it "the biggest win yet for our movement." Starbuck has been vocal in opposing corporate diversity efforts, framing them as unnecessary or harmful.
Walmart is the latest company to roll back DEI programs. In recent years, companies like Lowe's and Harley-Davidson have scaled back similar initiatives under financial and political pressure. This trend gained momentum after the Supreme Court's 2023 decision to end affirmative action in college admissions, which emboldened legal challenges to corporate diversity policies.
Donald Trump's 2024 election victory has further accelerated this trend. Shaun Harper, a professor at the University of Southern California and expert on race and equity, said, "The DEI infrastructure in most corporations was already flimsy even before Trump. His election gives business leaders who were never committed to [DEI] an easy out."
Walmart's changes come at a time when DEI initiatives face heightened scrutiny across corporate America. The programs, which gained prominence after the racial justice protests of 2020, have been shown to reduce employee attrition and improve motivation. However, Harper warned that abandoning these efforts could alienate employees and harm retention.
The retailer is also reassessing its product offerings. Walmart has begun reviewing its online marketplace to remove sexual and transgender-related products marketed to children, responding to increasing scrutiny over social issues. The company's moves reflect a growing trend among corporations distancing themselves from initiatives perceived as "woke."
Walmart insists its decisions align with its founding purpose of helping people "save money and live better." While the retailer frames the rollback as part of its broader evolution, the long-term impact on its workforce and customer base remains uncertain.
