Large corporations are firing diversity staff at higher rates than other corporate roles as firms continue to layoff employees.
Diversity, Equity and Inclusion (DEI) employees are leaving companies at a higher rate than non-DEI employees, based on a study from workforce data company Reveliolabs. The 12-month rate of attrition for DEI employees was 33% in December 2022, compared to 21% for non-DEI roles. (RELATED: Tech Firms Slash Diversity, Equity, Inclusion Dept’s To The Bones, Surprising No One)
Since July 2022, over 300 DEI professionals have left companies such as Target, Capital One, Amazon, Wells Fargo, Twitter, Nike and Intel as part of corporate layoffs. Target, Capital One and Amazon let go of between 15 and 20 DEI professionals each. Listings for DEI roles in the tech industry dropped 19% in 2022, Bloomberg reported.
Tech Layoffs Are Hitting Diversity and Inclusion Jobs Hard – Bloomberg https://t.co/9jLOSdfwnB
— Josh Kraushaar (@JoshKraushaar) February 2, 2023
“When economic conditions become uncertain, companies pare back their spending to the essentials,” said Andrew Crapuchettes, CEO of RedBalloon, a networking firm. “While well intentioned, most DEI programs are simply virtue signaling, often at the expense of healthy company culture. The c-suites understand this, and in choppy economic waters, DEI is likely slated to be among the first to go.”
U.S. corporations spent $9.3 billion on DEI initiatives in 2022 and projections estimate DEI spending will grow to $15.4 billion by 2026, according to consulting firm StrategyR.