Microsoft Shuts Down Diversity Team Amid Criticism Over Commitment

Microsoft has quietly shut down its Diversity, Equity, and Inclusion (DEI) team, drawing criticism from within the company. The team received an email on July 1 explaining that the layoffs were due to “changing business needs.”

It is unclear how many people were affected, but the team lead spoke out against the decision, saying, “True systems-change work associated with DEI programs everywhere are no longer business critical or smart as they were in 2020.”

This remark refers to the surge of corporate promises to improve diversity after George Floyd’s murder in 2020, which ignited the Black Lives Matter movement. In response, Microsoft pledged $150 million towards DEI efforts, aiming to double the number of Black and African-American leaders by 2025.

However, Microsoft now joins other companies, like Zoom, Google, and Meta, that have cut back on DEI programs. According to the New York Post, DEI job postings dropped by 44% by mid-2023 compared to the same period the previous year.

Other industries are also cutting back on DEI initiatives. In July 2024, Tractor Supply Co. faced criticism from the National Black Farmers Association for reducing its corporate diversity and climate advocacy efforts. CNN also disbanded its award-winning DEI department, although it reassigned affected reporters to other newsroom areas, stating that “race and equality is still their focus.”

A Microsoft spokesperson defended the company’s DEI efforts, saying, “Our focus on diversity and inclusion is unwavering. We are holding firm on our expectations, prioritizing accountability, and continuing to focus on this work,” said spokesperson Jeff Jones.

Microsoft’s 2023 “Diversity & Inclusion Report” showed some progress, with Black employees making up 6.7% of its global workforce, up from 4.5% in 2019. Hispanic employees represented 8%.

The layoffs come as part of Microsoft’s usual workforce reductions at the end of the fiscal year. An estimated 10,000 employees were expected to be cut in early 2023, with additional rounds of layoffs following.