Diversity, Equity, and Inclusion (DEI) initiatives effectively died in 2024, and the reasons are more systemic than individual failings. The short-lived boom of corporate diversity programs following the 2020 George Floyd protests proved unsustainable, collapsing under economic pressures and a deliberate backlash. The reality is DEI was never about genuine systemic change; it was a temporary market correction that corporations weaponized for PR while maintaining the underlying power structures.
The Illusion of Progress
The surge in DEI spending after 2020 was driven by a fleeting moral panic, not long-term commitment. Companies rushed to hire DEI officers, launch internal programs, and pledge support for underrepresented groups. Multimillion-dollar investments flooded social justice organizations, creating a new industry of consultants and executives. But beneath the surface, this was largely performative. Many gains were superficial, with little structural change to hiring practices, promotion policies, or pay equity.
As one DEI executive bluntly put it, “This is corporate America—what are you expecting?” The goal wasn’t to dismantle systemic racism but to placate public pressure and avoid reputational damage. DEI became a pacifying tool, a way for companies to appear progressive without actually ceding power.
The Inevitable Backlash
The backlash began as soon as economic conditions tightened. DEI budgets were among the first to be slashed, and DEI positions were terminated en masse. In 2023, the Supreme Court effectively ended affirmative action in college admissions, handing ammunition to anti-DEI activists. Thirteen Republican state attorneys general threatened legal action against companies with DEI programs, arguing they violated anti-discrimination laws.
The Fearless Fund lawsuit, though settled, set a dangerous precedent. Activists exploited existing anti-discrimination laws to dismantle DEI efforts under the guise of colorblindness. Corporations folded under pressure, fearing further legal challenges. By the end of 2023, major companies like Meta, Tesla, and Lyft had slashed their DEI teams by half or more.
The Fundamental Problem
The failure of DEI isn’t just about policy or backlash; it’s about the inherent incompatibility between diversity initiatives and America’s economic system. DEI attempts to correct systemic inequalities without addressing the underlying class dynamics that perpetuate them. Corporate America doesn’t want equity; it wants cheap labor and a docile workforce.
The reality is that power imbalances and racial hierarchies are baked into the system. Black empowerment, even in limited forms, threatens the status quo. As one consultant put it, “Every time there’s been an advance…there has come after that a backlash.” DEI was a temporary blip, a brief moment when corporations pretended to care before reverting to their default setting: maximizing profit at the expense of marginalized groups.
The Inevitable Outcome
The collapse of DEI wasn’t surprising. It was a predictable outcome of a flawed system designed to fail. DEI never had the teeth to challenge power structures, and corporations never intended it to. The brief period of progress was an anomaly, a result of external pressure rather than internal reform.
Today, DEI is a joke, a cautionary tale about the limits of corporate activism. The inevitable consequence is a further entrenchment of inequality, with systemic barriers remaining intact and marginalized groups left to navigate a rigged game. The illusion of progress is over, and the reality of American racism has reasserted itself.
