March 6, 2025 – Major U.S. retailers, including Target, Amazon, and Tractor Supply, have publicly scaled back their diversity, equity, and inclusion (DEI) programs while quietly continuing to support some initiatives behind the scenes. This balancing act reflects growing political and legal pressures surrounding corporate DEI commitments.

Public Cuts, Private Commitments

While some companies have eliminated formal DEI programs and stopped reporting diversity data, many still fund internal employee resource groups and support LGBTQ+ and racial justice events.

Jason C. Schwartz, an employment law expert, notes that companies are walking a fine line:

“They are trying to stay true to corporate values, satisfy stakeholders, but reduce legal risk.”

The conflicting approaches highlight the tightrope companies are walking after political figures, including former President Donald Trump, called for legal action against DEI programs perceived as exclusionary.

How Major Retailers Are Responding

Tractor Supply ended its DEI program last year, including stopping diversity hiring initiatives and withdrawing from the Human Rights Campaign’s (HRC) Corporate Equality Index. However, the company assured employees that inclusivity efforts, particularly internal employee resource groups, would continue.
Target scrapped a goal to increase Black employees by 20% over three years and pulled out of the HRC survey in January. However, CEO Brian Cornell reassured DEI advocates that Target remains committed to diversity efforts.
Amazon has also rolled back some DEI initiatives. Black business leader Sheletta Brundidge cut Amazon as a sponsor of her Black Entrepreneurs Day, saying the company's quiet reassurances were not enough.

Some advocacy groups, such as Twin Cities Pride, have gone as far as refusing sponsorships from companies that rolled back DEI publicly while continuing undisclosed efforts.

Political and Legal Risks Shape Corporate DEI

Retailers face mounting legal pressure. In February 2025, U.S. Attorney General Pam Bondi threatened to prosecute companies over "illegal DEI programs" but failed to define what constitutes illegality.

Meanwhile, some corporations are resisting political pressure:

Apple and Costco shareholders recently voted to maintain DEI programs, despite political backlash.
Other companies, like Paramount, Walmart, PepsiCo, and McDonald’s, have reduced DEI efforts, though details on their internal strategies remain unclear.

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As DEI remains a contentious issue, businesses continue "picking their battles," weighing legal risks while maintaining commitments to diversity behind closed doors.

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