Google Abandons Diversity Hiring Targets Amid Scrutiny

Google (GOOG, GOOGL) has reversed its stance on diversity hiring targets, aligning with a growing trend in Silicon Valley as corporate DEI initiatives face legal and political challenges.

Google's Policy Shift

On Wednesday, Google announced it would eliminate aspirational hiring goals aimed at increasing representation. The company cited "recent court decisions and executive orders" as the impetus for its decision.

Industry-Wide Impact

Google joins Meta (META) in withdrawing from certain diversity initiatives. However, some tech giants, including Apple (AAPL), Microsoft (MSFT), and JPMorgan Chase (JPM) remain committed to DEI practices.

Legal and Political Pressures

Legal and political pressures have contributed to the shift away from DEI policies. The Trump administration prohibited federal DEI programs and directed the investigation of private sector initiatives.

Supreme Court Ruling

The US Supreme Court's ruling that banned race-based quotas in college admissions has also influenced the retreat from diverse hiring practices.

Costco and Goldman Sachs Pushback

Despite the trend, some companies, such as Costco (COST), are resisting challenges to their diversity efforts. Goldman Sachs (GS) and JPMorgan Chase have also pledged to continue promoting DEI.

Google's Continuing Initiatives

While abandoning hiring targets, Google plans to maintain internal support networks and continue working with universities on products that enhance inclusion and access for all users and partners.

Diversity Data

In 2024, Google's US workforce comprised 45.3% white, 45.7% Asian, 5.7% Black, 7.5% Hispanic, and 0.9% Native American. The representation of women in newly hired positions increased slightly.