Google Abandons Diversity Hiring Targets, Joining Tech Giants in Policy Reversal

Key Highlights:

* Google (GOOG, GOOGL) discontinues aspirational hiring goals tied to representation.
* Meta (META) also rolls back corporate diversity initiatives.
* Apple (AAPL) maintains DEI practices and faces shareholder vote on risk assessment.
* Microsoft (MSFT) retains diversity team despite previous reported cuts.
* Legal and political pressure intensifies, leading to widespread withdrawal from DEI policies.

Background:

Google's decision follows heightened scrutiny of corporate Diversity, Equity, and Inclusion (DEI) programs by the US Department of Justice. Numerous companies, including Walmart, McDonald's, and Target, have withdrawn from DEI policies.

Impact on Silicon Valley:

Google's move creates a clear divide in Silicon Valley, where tech giants differ in their approach to diversity initiatives. Apple continues to support DEI practices, while Meta has reversed course.

Legal Considerations:

A recent US Supreme Court ruling outlawed race-based quotas in college admissions, prompting conservative groups to challenge diverse hiring practices.

Company Responses:

Despite discontinuing hiring targets, Google plans to retain employee resource groups and continue its work with universities to promote inclusion. Microsoft has maintained its diversity team and emphasizes the business case for DEI.

Industry Trends:

Major banks such as JPMorgan Chase (JPM) and Goldman Sachs (GS) remain committed to DEI efforts despite pressure from activist groups. Costco successfully defeated a shareholder resolution challenging its DEI practices.

Additional Information:

Google's diversity statistics for 2024 indicate a predominantly white and male workforce. The company reports a slight increase in Black and Hispanic representation compared to the previous year.