Resume.org surveyed 1,000 companies with diversity, equity, and inclusion (DEI) programs in 2024 to understand how these initiatives may change in 2025. One in eight companies are planning to eliminate or reduce DEI programs in 2025, with shifts in the political climate cited as the top reason for this change. More than half (56%) of managers believe DEI initiatives were primarily implemented for public relations purposes. Additionally, four in 10 companies plan to reallocate DEI funds to operations and AI.
Of companies that had DEI programs in 2024, 5% say they have eliminated their program, while another 8% are reducing their DEI 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 by the end of 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 at least somewhat likely to phase them out within the next four years.
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 ROI or impact (36%) are also top reasons. Additionally, 36% say DEI efforts were not well-received by employees, while 28% believe DEI no longer aligns with their business priorities.
“Many companies have faced budget cuts and may view DEI as non-essential, reallocating resources to more immediate profit-driven areas,” says Irina Pichura, career coach at Resume.org. “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 culture and reduce psychological safety for underrepresented groups.”
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.