DEI Dead or Alive: Has DEI Become America’s Schroddinger’s Cat?
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Back in February, we published our newsletter DEI Talent Trends With Jenn Tardy, and the first comment came in almost immediately.
"FYI. DEI is dead thank god"—Charlie
We weren’t surprised. In today’s climate, we expect this kind of reaction. But here’s the thing—Charlie is wrong.
People have a lot of opinions about DEI these days. Some act like it disappeared overnight. Others insist it’s stronger than ever. We’re living in a bizarre version of Schrödinger’s Cat, where DEI is somehow both alive and dead at the same time—until you open the box and see for yourself.
If you’re not a quantum physics nerd, here’s the gist: Schrödinger’s Cat is a thought experiment where a cat is placed inside a box with a mechanism that has a 50/50 chance of killing it. Until you open the box, the cat is both alive and dead at the same time. Sounds ridiculous? Exactly. And yet, that’s how people are talking about DEI—as if it both exists and doesn’t, depending on who you ask.
Well, the box is wide open. And what’s DEI doing inside? It’s very much alive.
What Does It Even Mean for DEI to Be ‘Dead’?
Let’s break this down. What does "dead" actually mean? Gone? Nonexistent? Irrelevant? Fake?
Because if that’s the case, we need to take a serious look at this claim. If DEI is dead, then that means diversity, equity, and inclusion have ceased to exist.
So, let’s test that.
Is Diversity Dead?
Diversity means variety, a mix of people from different backgrounds, identities, experiences, and perspectives.
Is that gone? No. Unless you’re suggesting that every workplace in America now has only one gender, one race, one ability level, and one background sitting at the table. (And if that’s true, we’ve got much bigger problems.)
And even if some people don’t like the word “diversity,” they sure do like selling products to a diverse market, hiring talented professionals with diverse skills, and making their businesses more adaptable in a global economy.
So, diversity is still here. The work of removing barriers to opportunity is still very much alive.
Is Equity Dead?
Equity means making sure everyone has a fair shot at success, not just those who started with the most advantages.
Does it mean Equity is gone and there’s fairness everywhere? No.
Because if it were, we wouldn’t still have:
Pay gaps that show women earn 85 cents for every dollar a man makes.
Hiring biases that mean people with “white-sounding” names get 50% more callbacks than those with “ethnic-sounding” names, even when their résumés are identical.
Leadership pipelines where Black, Latino, and women are underrepresented at senior levels despite having the qualifications.
These disparities still exist. That means equity isn’t dead.
Is Inclusion Dead?
Inclusion means creating workplaces where people actually want to stay, contribute, and thrive.
If inclusion were dead, companies wouldn’t still be struggling with retention problems, employees wouldn’t be quitting toxic workplaces, and businesses wouldn’t be competing to be on Glassdoor’s Best Places to Work list.
But they are. And for good reason.
Study shows that companies with inclusive cultures see higher employee engagement, lower turnover, and stronger innovation.
So, if inclusion is dead, then why are companies still trying to get it right?
If DEI Isn’t Dead, Why Are Companies Cutting It?
This is the part that gets tricky. If DEI is still alive and kicking, then why are many companies (not a majority though) reducing their DEI budgets, laying off DEI staff, or quietly phasing out public commitments?
It’s not because DEI doesn’t work—it’s because of political pressure, legal uncertainty, and, in some cases, corporate fear.
1. The Federal Funding Factor: Compliance Dictates Strategy
Companies that receive federal contracts are facing a different reality. Under the previous administration, federal contractors were encouraged to promote DEI in hiring and federal procurement. But with the shifting political landscape, the tone has changed. Executive Order 14173, signed in 2025, now requires federal agencies to eliminate policies that grant preferences based on race, gender, or other identity factors. It also revokes affirmative action requirements for federal contractors, marking a sharp departure from previous efforts to promote workplace diversity.
What does this change? Some companies that rely on government contracts, like Northrop Grumman and Lockheed Martin, have quietly adjusted or rolled back certain DEI initiatives because their government funding depends on compliance.
Similarly, universities receiving federal aid have been caught in the same push-and-pull. The University of North Carolina (UNC) disbanded its DEI office following state-level pressure.
For these organizations, the decision is less about DEI’s effectiveness and more about political survival.
2. Political Statements Masquerading as Business Strategy
Then, there are the companies that rolled back DEI not because they had to, but because they wanted to make a political statement. State Farm, for example, quietly changed its public-facing DEI messaging, despite previously investing in diversity programs.
Tesla, under Elon Musk, has also taken a hard stance against DEI. They’ve eliminated DEI positions and publicly mocked diversity efforts, aligning itself with the growing anti-DEI sentiment in certain political circles.
For these companies, cutting DEI is less about business impact and more about signaling where they stand ideologically.
3. The Backlash Factor: Playing It Safe
There’s no denying that DEI has become a hot-button issue. Some companies are pulling back out of fear—fear of lawsuits, fear of public scrutiny, fear of losing customers.
However, most people still support workplace fairness. A 2023 Pew Research Center poll found that 56% of U.S. adults believe that focusing on increasing DEI is a “good thing.” Another research found that 73% of Americans find it important for the company to promote DEI. So, while a vocal minority may be pushing back against DEI, the broader workforce and customer base still see its value.
4. Budget Cuts: The Classic Excuse
Let’s not forget the age-old excuse—money. In an economic downturn, companies look for areas to cut, and DEI often lands on the chopping block. Not because it’s not valuable, but because many leaders still see it as an “extra” rather than a core business function.
But that’s shortsighted. Companies that cut DEI often see higher turnover, weaker talent pipelines, and declining employee morale. In contrast, businesses that invest in workplace inclusion consistently outperform their competitors in profitability and innovation.
If DEI Is “Dead,” Why Are Companies Still Doing the Work?
Many companies are still doing their part to promote DEI in one way or another, proving that it’s alive and well. So, let’s stop debating whether DEI is alive or dead and focus on reality:
Companies still need diversity among their talent. America is only getting more diverse. By 2045, the U.S. will be a majority-minority nation. Businesses that fail to build diverse teams will be out of touch with their own customers.
The Supreme Court struck down affirmative action in college admissions, not in hiring. Yet some companies panicked and started pulling back on DEI efforts that were completely unrelated. That’s more fear and fewer facts.
DEI may be rebranded, but it’s not disappearing. Some companies are shifting to terms like “inclusive leadership” or “equitable advancement opportunities” to avoid the political noise. But make no mistake—the work continues.
DEI Isn’t Dead. It’s Just Evolving.
The next chapter of DEI may come with new language, but the mission stays the same:
Companies still need to hire the best people.
They still need to retain top talent.
They still need to serve an increasingly diverse customer base.
While the terminology might shift, the obstacles remain the same: racism, bias, and systemic oppression are still standing in the way of progress. And we will continue calling them out.
Rather than arguing over whether DEI is "dead," let's focus on the real issue:
If someone says they’re against DEI, ask: Are you against fair hiring?
If they push back on bias training, ask: Do you believe qualified people should be overlooked because of stereotypes?
If they dismiss systemic barriers, ask: Do you think talent and opportunity should be disconnected?
This is not about a trend—it’s about whether we believe in fairness, dignity, and access for all.
The Next Phase of the Movement
The next iteration of this work may come under a different name, but the mission remains the same. We’re not here to debate labels or choose sides. We’re here to remove the hurdles that keep people from reaching their full potential.
No matter what we call it, we will continue fighting to ensure that access is open, pathways are clear, and success is determined by ability—not oppression.
Because at its core, this work has never been optional. It has always been necessary. And no comment will ever change that.
