1 in 8 Companies Are Scaling Back DEI Commitments in 2025, Many Cite Political Climate

This month, Resume.org surveyed 1,000 companies with diversity, equity, and inclusion (DEI) programs in 2024 to understand how these initiatives may change in 2025.

Major takeaways:

• 1 in 8 companies are eliminating or reducing DEI programs in 2025
• Shifts in the political climate are the top reason for a decreased focus on DEI
• 56% of managers believe DEI initiatives were primarily implemented for public relations purposes
• 4 in 10 companies plan to reallocate DEI funds to operations and AI

1 in 8 Companies Are Eliminating DEI or Slashing the Budget in 2025

Of companies we surveyed that had DEI programs in 2024, 5% say they’ve eliminated their DEI programs, while another 8% are reducing their budget. Meanwhile, 65% say their DEI budget will remain the same, and 22% plan to increase funding.

Among companies that have maintained or reduced DEI funding, 11% say they are very (4%) or somewhat likely (7%) to eliminate their DEI program in 2025. Another 37% claim elimination is not very likely, while 32% say it is not likely at all. About 19% remain uncertain about their plans.

Even among companies that do not anticipate eliminating their DEI programs in 2025, 8% say they are very or somewhat likely to phase them out within the next four years.

Change in political climate is the top reason for decreased focus on DEI

Nearly half (49%) of companies reducing or eliminating DEI programs cite political climate changes as a key factor. Economic pressures (37%) and a lack of measurable return on investment (ROI) or impact (36%) are also significant reasons. Additionally, 36% say DEI efforts were not well-received by employees, while 28% believe DEI no longer aligns with their business priorities.

The majority of managers surveyed (56%) feel that DEI initiatives were implemented primarily for public relations purposes.

“Many companies have faced budget cuts and may view DEI as non-essential, reallocating resources to more immediate profit-driven areas,” says Career Coach Irina Pichura. “Some companies also abandon DEI programs due to difficulties quantifying their impact, leading them to question their value. However, eliminating DEI programs can result in less inclusive workplace cultures and reduce psychological safety for underrepresented groups.”

4 in 10 Will Reallocate Funds to AI

Among companies that have reduced or eliminated DEI initiatives, 51% have redirected funds to general operating expenses, while 40% are investing in AI or technology initiatives. Additionally, 28% have allocated funds to employee salaries or benefits, 24% have shifted them to marketing, and 8% have invested in office space or facilities.

Methodology: Using the Pollfish platform, Resume.org surveyed 1,000 business leaders in January 2025. To qualify, respondents had to meet specific demographic criteria and answer screening questions confirming they currently work for a company that had a DEI program in 2024 and that they are knowledgeable about the company’s current and future DEI plans.