Microsoft has let go of its internal team dedicated to diversity, equity and inclusion (DEI) due to “changing business needs.”
Photo: Reuters, Rimjim Singh, New Delhi After Microsoft fired its internal team that works on diversity, equity and inclusion (DEI), the team leader criticised the company for not doing enough to support the initiative.
“The true systems change work related to DEI programs everywhere is no longer business-critical or business-smart as it is in 2020,” team leaders said in an email to thousands of employees viewed by Business Insider.
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The email said the team was eliminated as of July 1 due to “changing business needs,” but it was unclear exactly how many employees would be affected.
After the killing of George Floyd by Minneapolis police officers in 2020 and the historic protests that followed, many tech companies, including Microsoft, pledged to step up their diversity efforts.
In 2020, Microsoft announced a goal to double the number of people of color in leadership positions at the company by 2025, but progress toward that goal is currently unclear.
Tech companies scale back DEI efforts
Despite these efforts, some tech companies appear to be scaling back their diversity efforts. Bloomberg reported that Zoom Video Communications Inc. recently laid off its team focused on DEI. CNBC reported that tech giants Google and Meta also scaled back their DEI programs last year.
In an official statement, Microsoft spokesperson Geoff Jones said, “Our commitment to D&I remains unchanged. Our focus on diversity and inclusion is unwavering, and we stand by our expectations, prioritize accountability and remain committed to this work.”
Microsoft often cuts its workforce at the start of a new fiscal year. Layoffs have been common at Microsoft and other tech companies recently. Last year, Microsoft announced plans to lay off 10,000 employees in early 2023 and has implemented more layoffs since then.
Microsoft Diversity Programs
Following the death of George Floyd in 2020, Microsoft announced plans to double the number of managers and senior employees of color by 2025. The company further stated that the initiative is in compliance with civil rights law.
But the initiative has come under intense scrutiny, with the U.S. Department of Labor investigating whether the company's plan violates civil rights laws because it “appears to suggest that employment actions may be taken on the basis of race.”
“This letter asks us to prove that the actions we are taking to improve opportunity are not unlawful race-based decisions,” the company said in a blog post.
An executive order issued by the Trump administration bars government contractors like Microsoft from offering certain racial sensitivity and other diversity training programs.
Microsoft settles racial discrimination lawsuit
In September of that year, Microsoft reached a $3 million settlement with the Department of Labor over accusations of racial discrimination in its hiring practices. As part of the agreement, Microsoft committed to undergoing an investigation to ensure non-discriminatory hiring practices, as outlined in a letter from Craig Leen, director of the Department of Labor's Office of Federal Contract Compliance Programs.
“Contractors are required to establish affirmative action programs to set minority and female workforce utilization goals based on availability, but contractors may not engage in discriminatory practices in achieving those goals,” the letter said.