DEI Makes a Comeback: Companies Quietly Reintroduce Diversity Initiatives Amid Backlash and Hiring Challenges

After a wave of rollbacks, many companies are quietly reinstating diversity, equity and inclusion (DEI) initiatives—often under new names and with renewed caution.

Several businesses that previously abandoned DEI policies are now reintroducing similar efforts, though often rebranded as “inclusive culture” or a “culture of belonging.” The changes, they say, are intended to distance the efforts from the politicized stigma attached to the term “DEI,” not to abandon its core purpose.

According to a report by WTOP NEWS fewer than 25% of those companies admitted it was a mistake to eliminate DEI programs. Others cited political pressure, public scrutiny, or business needs as driving factors behind the reversal.

“There’s irony in the reasons some of these companies are bringing DEI back,” said Julia Toothacre, a career strategist at Resume Templates. “Thirty-three percent said it was harder to hire diverse talent. What did they think was going to happen when they eliminated all their DEI initiatives? They inadvertently created an environment that said, ‘We don’t care if you’re comfortable here or not.’”

Toothacre noted that DEI was originally introduced to strengthen workplace culture and improve business outcomes. Many executives who participated in the recent survey emphasized that their decision to revive DEI efforts is driven by business priorities—not social responsibility.

“There was a lot of negative PR, and that impacted the bottom line with consumers, especially younger ones,” Toothacre said. “But I think it also hit productivity. Some companies saw a lot of internal turmoil. We probably saw a lot of people quit.”

Reputational damage, client losses and declining employee morale were among the most common reasons cited for the return of DEI-related strategies.

However, not all companies are on board. While some organizations have resumed diversity initiatives, others remain undecided or plan to steer clear of any new DEI-related efforts. For many, internal discussions are still ongoing.