Walmart scales back DEI policies amid conservative pressure

Walmart has announced sweeping changes to its diversity, equality, and inclusion (DEI) policies, bowing to growing pressure from conservative activists, as per reports by the Associated Press.

The Bentonville, Arkansas-based retailer confirmed it will not renew its five-year $100 million commitment to a racial equity center established in 2020 after George Floyd's murder. Additionally, Walmart will exit the Human Rights Campaign's annual index measuring LGBTQ+ workplace inclusion and end prioritization of race or gender in supplier contracts.

Walmart's rollback aligns with heightened scrutiny of corporate DEI initiatives following the U.S. Supreme Court's 2023 decision to strike down affirmative action in college admissions. Conservative groups, emboldened by the ruling, have filed lawsuits challenging workplace diversity programs.

Influential voices like activist and commentator Robby Starbuck have intensified the pushback, singling out companies on social media.

"This is the biggest win yet for our movement to end wokeness in corporate America," Starbuck wrote on X (formerly Twitter), claiming to have engaged with Walmart.

The retailer also confirmed to the Associated Press that it would better regulate third-party marketplace items to avoid selling products like youth chest binders, which are often used by transgender individuals. It will also review its grants for Pride events, ensuring family-friendly content and separating such areas from drag performances.

Walmart's shift extends supplier diversity programs, with the company stating it will no longer consider race or gender as factors in awarding contracts.

Demographic data will also be excluded when determining eligibility for grants. Walmart emphasized that it has never implemented quotas and will not introduce them.

In response to criticism, Walmart reiterated its commitment to fostering “belonging” over the DEI-focused terminology previously used.

“We’ve been on a journey and know we aren’t perfect, but every decision comes from a place of wanting to foster a sense of belonging and open doors to opportunities for all our associates, customers, and suppliers,” the company said in a statement.

The changes come amidst a broader trend of companies scaling back DEI programs. Firms like Ford, Lowe's, and Harley-Davidson have also retreated from such initiatives following similar pressures. Walmart, however, is the largest corporation yet to take this step, with 1.6 million U.S. employees.

These developments also coincide with a political environment increasingly critical of DEI policies, spearheaded by figures like former President Donald Trump and his adviser Stephen Miller, who leads America First Legal—a group actively challenging corporate DEI policies.

Democratic lawmakers, meanwhile, continue to urge corporations to sustain their DEI efforts, arguing such initiatives are essential for equitable opportunities. Walmart’s decision signals the challenging balance corporate America faces in navigating political, legal, and societal pressures surrounding DEI.