Key Takeaways from the Walmart DEI Rollback Initiative

• Aura Workforce Analytics Data: DEI-related job postings in the USA have declined by 40% from January 2022 to mid-2024, reflecting a broader retreat from DEI hiring priorities across industries.

• Walmart’s DEI Details: Walmart has ceased using terms like “DEI,” ended its participation in major DEI benchmarks, and discontinued initiatives like the Center for Racial Equity.

• Political and Legal Pressures: Legal rulings, such as the Supreme Court’s 2023 decision on affirmative action, have driven corporations to scale back diversity equity and inclusion programs, as well as pressure from conservative groups, such as the group called America First Legal led by Stephen Miller, which has been challenging DEI Policies.

• Business Risks of Retreating: Experts argue that scaling back DEI efforts may harm innovation, talent acquisition, and connection with younger, socially conscious generations.

Walmart’s recent decision to roll back its diversity, equity, and inclusion (DEI) initiatives has sparked a heated discussion on whether this move reflects a broader trend in corporate America. As the largest private employer in the U.S., Walmart’s actions carry significant weight, raising questions about the future of DEI programs across industries.

Details Behind the Rollback of Diversity, Equity, and Inclusion Programs

The changes announced by Walmart include discontinuing the use of terms such as “DEI” and “Latinx” in official communications, ceasing participation in the Human Rights Campaign’s Corporate Equality Index, and winding down its equity racial center, the Center for Racial Equity, which was established to address systemic gaps experienced by African American people in various sectors,  after the current funding cycle.

Additionally, the company confirmed it would no longer prioritize supplier contracts based on race or gender, nor offer certain third-party marketplace items like LGBTQ-themed children’s products. Walmart has also decided to remove sexual and transgender products from its online marketplace, specifically targeting items that may be inappropriate for children.

Walmart executives have framed these changes as part of an ongoing effort to “make the best decisions” for employees, customers, and stakeholders. John Furner, Walmart's U.S. CEO, emphasized that the company remains committed to fostering a sense of belonging for “all our associates” while acknowledging the complexity of balancing customer and cultural expectations.

DEI Job Postings: A Declining Trend

To examine whether Walmart's DEI changes were part of a larger corporate trend, Aura examined publicly-sourced job posting data from a broad group of employers.

Data from Aura workforce analytics appears to show a notable decline in job postings for DEI-specific roles across industries. In January 2022, over 3,700 specifically DEI-related positions were advertised in our analyzed company sample. By this time in 2024, that number had dropped by nearly 40%.

Graph of DEI Job Postings by Aura Workforce Analytics

This downward trend corresponds with Walmart’s decision, suggesting that companies may increasingly hesitate to prioritize DEI hiring as economic pressures and legal risks mount. It should be noted that the decrease in DEI-related jobs does not necessarily equate with the deprioritization of broader DEI programs and initiatives. Still, the data suggest that the demand for DEI-focused roles is decreasing overall.

A Changing Legal and Political Landscape

Walmart’s rollback mirrors a growing reevaluation of diversity efforts among major corporations. Conservative groups, emboldened by the Supreme Court’s 2023 decision striking down affirmative action in college admissions, have intensified legal challenges to corporate DEI policies.

These activists have challenged corporate DEI policies, citing a desire to end what they consider 'wokeness' in corporate practices, particularly following significant legal rulings and societal shifts. Stephen Miller’s America First Legal has spearheaded lawsuits targeting programs that prioritize historically marginalized groups, such as priority treatment for supplier contracts, diversity initiatives, and racial equity training programs.

Walmart is not alone in scaling back. Companies like Toyota, Ford, and Tractor Supply have similarly adjusted their DEI strategies amid consumer boycotts and litigation fears. Analysts suggest that the political shift accompanying former President Donald Trump’s reelection has accelerated this trend as businesses aim to mitigate risks in a polarized environment.

Broader Implications for Corporate DEI Policies

Critics argue that withdrawing from DEI initiatives could hinder progress on workplace inclusion and representation for historically marginalized groups. For instance, Walmart’s decision to withdraw from the Center for Racial Equity and reduce emphasis on diversity programs may impact its ability to recruit and retain diverse talent. This move also sends a powerful signal to other major companies with DEI programs reevaluating their DEI efforts.

Adding a counterpoint to this debate, Sheares Benjamin, a marketing consultant specializing in social impact initiatives, argues that Walmart’s rollback of diversity commitments is a fundamental business misstep. Benjamin highlights, “The nation’s largest private employer is backing away from diversity programs not because they failed, but because they faced pressure from a vocal minority. This decision ignores overwhelming evidence that diverse companies perform better, innovate faster, and connect more effectively with their customers.” This perspective challenges Walmart’s framing of its decisions as strategic pivots and underscores the long-term business risks of retreating from DEI principles.

Additionally, the rollback of DEI initiatives could negatively affect workplace inclusion measures, as companies may withdraw from annual benchmarks that evaluate their commitment to creating inclusive environments.

On the other hand, proponents of these rollbacks assert that companies must prioritize individual merit over identity-based initiatives. They claim such changes align with a broader desire for “normalcy” in hiring practices and corporate policies.

The Role of Social Media Activism Against DEI Initiatives

Conservative influencers and political commentators have played a significant role in amplifying anti-DEI sentiment. Robby Starbuck, a vocal critic of “wokeness” in corporate America and conservative political commentor, has celebrated Walmart’s decision, framing it as a victory for consumers demanding neutrality in business practices. His campaigns, among others from conservative groups, have pressured companies like Target and Amazon to reconsider their inclusion policies, illustrating the power of coordinated social media efforts.

The Path Forward for Diversity Programs

As the debate over DEI initiatives intensifies, the business community faces a critical juncture. Should companies maintain their commitment to diversity programs despite mounting backlash or pivot toward less divisive strategies? The answer may be in finding a balance that ensures workplace inclusion while addressing stakeholder concerns.

Walmart's challenge will be to demonstrate that these changes do not undermine its broader mission to “open doors of opportunity for all.” For other organizations in corporate America, Walmart’s major decision may be seen as a barometer for navigating the evolving landscape of corporate workforce DEI policies.