Google Drops DEI Hiring Targets Amid Scrutiny

Background

Google (GOOG, GOOGL) has announced the elimination of aspirational hiring goals related to representation. This decision comes amidst intensifying scrutiny of corporate diversity, equity, and inclusion (DEI) initiatives in Silicon Valley and Washington, D.C.

Company Response

Google's spokesperson attributed the move to ongoing reviews of DEI programs following recent court decisions and executive orders. The company emphasized its commitment to an equal opportunity workplace and the evaluation of necessary changes to ensure compliance.

Industry Trends

Google joins Meta (META) in abandoning certain DEI initiatives. However, not all tech giants are retreating. Apple (AAPL) and Microsoft (MSFT) have reiterated their support for diversity and inclusion.

Legal and Political Pressure

Political and legal pressure has contributed to the withdrawal from DEI policies. President Donald Trump signed an executive order prohibiting federal DEI programs and targeting illegal diversity actions in the private sector.

Supreme Court Ruling and Conservative Groups

A recent U.S. Supreme Court ruling against race-based quotas in college admissions has emboldened conservative groups to challenge diversity hiring practices.

Countervailing Forces

Despite the setbacks, some companies continue to prioritize DEI. Costco defeated a shareholder resolution challenging its diversity practices. Big banks like JPMorgan Chase (JPM) and Goldman Sachs (GS) remain committed to promoting DEI.

Google's Ongoing Initiatives

While Google has eliminated hiring targets, it plans to maintain its Employee Resource Groups and collaborations with universities to promote inclusion.

Diversity Statistics

Google's 2024 Annual Diversity Report reveals a workforce that is predominantly white (45.3%) and male (66.2%). Minorities and women remain underrepresented in both the workforce and hiring pipelines.