New data reveals immediate impact on workforce diversity and employee morale
Nearly half of companies that eliminated their diversity, equity, and inclusion programs since November 2024 are experiencing declining employee morale, according to new research that highlights the immediate business costs of stepping back from inclusive practices.
Resume.org surveyed 965 companies and found that 20% have completely eliminated their DEI programs since President Trump’s re-election, with another 11% scaling back their efforts.
The impact on talent has been swift and measurable. Among companies that cut DEI programs:
The talent pipeline changes are particularly stark. Companies that eliminated DEI programs report hiring 57% fewer underrepresented workers overall, with specific declines including 37% fewer women of color, 33% fewer LGBTQIA+ employees, and 33% fewer men of color.
In contrast, only 12% report reduced hiring of white men, revealing the disproportionate impact on diverse talent acquisition.
“Eliminating DEI programs, particularly due to political pressure, is short-sighted and creates long-term risks,” said Kara Dennison, Head of Career Advising at Resume.org. “Companies that cut DEI programs are hiring fewer underrepresented employees, leading to reduced innovation, lower performance, and weaker talent pipelines.”
Nearly three-quarters (74%) of business leaders who scaled back DEI cited the shift in political climate as their primary reason. Some respondents expressed relief at the changes, with one noting: “DEI was very divisive. Good that we eliminated it.”
However, others voiced concern about the consequences. “We are worse off as a company and our place in society since dropping the DEI policy,” one respondent told researchers.
“We are worse off as a company and our place in
society since dropping the DEI policy”
The trend may continue, with 16% of companies likely to eliminate their DEI programs by the end of 2025, and another 7% considering removal within four years.
However, 71% of companies with existing DEI programs report no changes to their initiatives, suggesting the corporate response remains divided.
Dennison warned that companies abandoning DEI “risk reputational harm, disengagement, and an inability to adapt to an increasingly global, values-driven marketplace.”
The early data suggests that eliminating DEI programs may be a classic case of short-term thinking with long-term consequences. Organisations that have cut these initiatives are already experiencing:
Meanwhile, companies maintaining inclusive practices are likely gaining competitive advantages in talent acquisition, retention, and performance.
As this market redistribution continues, the divide between inclusive and non-inclusive organisations will likely widen. Top performers from underrepresented groups have options – and they’re increasingly exercising them.
The organisations that emerge strongest from this period will likely be those that viewed DEI not as a political statement, but as a talent strategy. In a competitive market where innovation and adaptability determine success, access to the broadest possible talent pool isn’t just nice to have – it’s essential for survival.
For organisations looking to strengthen their commitment to diverse talent acquisition, specialist recruitment partners can provide crucial support. Halzak, a diversity tech recruitment specialist, supports companies across the UK, Europe, and the US tech industry in increasing diverse talent representation at all levels and creating inclusive environments.
With over 25 years of industry experience, Halzak specializes in connecting exceptional talent across Digital, Engineering, Data, Cybersecurity, Product Management, and Technology Leadership – embedding diversity and inclusion into every step of the process. Their services include executive search, contingency recruitment, and bespoke solutions designed to help companies build diverse, high-performing teams while competitors scale back their efforts.
As the talent landscape continues to shift, the question for every organisation is clear: Will you be among the companies gaining competitive advantage through inclusive hiring, or will you watch top diverse talent choose your competitors?
If your organisation is committed to building diverse, high-performing teams and wants to capitalise on this market opportunity, contact Halzak Founder Kellie Kwarteng today to discuss how their specialised recruitment services can strengthen your talent acquisition strategy.
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About the Research
This survey, conducted via Pollfish in July 2025, included 965 U.S. business leaders. Demographic and screening criteria ensured participants held relevant roles and represented companies that had DEI programs prior to November 2024. To view the full report, visit: https://www.resume.org/6-in-10-companies-that-eliminated-dei-since-trumps-reelection-are-hiring-fewer-diverse-employees/
