Despite Trump-Era Pressure, Corporate DEI Rollbacks Lose Steam

The wave of corporate retreats from diversity, equity and inclusion (DEI) programs that followed President Donald Trump’s return to office is beginning to slow, according to a new study from Gravity Research.

According to USA Today, Trump’s early executive orders targeting “illegal DEI” efforts prompted a rapid shift among large corporations, particularly federal contractors. But researchers say that momentum has cooled as the administration shifts focus to other priorities like immigration and tariffs.

“President Trump’s return to office created a seismic shift in the risk calculus for companies with DEI commitments,” said Joanna Piacenza, vice president of thought leadership at Gravity Research. “Unlike the previous backlash driven by online activists, this wave brought legal and policy threats.”

According to the study, 80% of DEI policy changes in Fortune 1000 companies and major sports leagues from June 2024 to May 2025 occurred after Trump’s inauguration. But the pace has slowed. Eleven companies announced major DEI revisions in February; only two did so in May.

“The slowdown appears to reflect a ‘wait-and-see’ posture from companies,” Piacenza said. “With initial policy adjustments in motion, companies seem to be reassessing further changes.”

Many early DEI rollbacks came from companies with federal contracts or in heavily regulated industries. Changes focused on revising hiring and representation goals, renaming programs (e.g., “inclusion and belonging”), and scrubbing DEI terms from websites and filings.

Few dismantled employee resource groups, but many rebranded them to emphasize open participation and business-aligned goals, possibly in response to federal scrutiny.

Despite appearances, most companies are not abandoning DEI, the study found. About 80% affirmed ongoing commitments to “inclusion,” “belonging,” or “accessibility.”

“There’s growing evidence that DEI is good business,” said Carissa Romero, co-founder of workplace consulting firm Paradigm. “Companies that retreat from DEI face backlash, market losses and talent retention issues.”

The Equal Employment Opportunity Commission in March clarified that many DEI efforts remain lawful, further easing corporate concerns. However, recent moves from the Labor Department suggest more enforcement could be ahead.

Critics like shareholder activist Paul Chesser argue that companies are offering “head fakes” — appearing to comply with Trump’s directives while keeping DEI efforts intact. That tactic, experts warn, could invite renewed scrutiny.