KPMG US Ends DEI Initiatives Amid Legal Landscape Shift
KPMG US has discontinued its DEI (Diversity, Equity, and Inclusion) talent strategy established in response to the 2020 Black Lives Matter protests. This move follows similar rollbacks by other Big Four professional services firms since Donald Trump's reelection.
Paul Knopp, Chair and CEO of KPMG US, noted in a memo that "the legal landscape surrounding diversity, equity, and inclusion efforts has been shifting, via executive orders and in the courts." As a result, KPMG US will conclude its "Accelerate 2025" program and re-evaluate related initiatives.
The firm will cease using forward-looking, metric-based aspirations tied to protected categories such as race or gender. Additionally, KPMG has removed DEI transparency reports from its website, ensuring it aligns with current policies and programs.
Launched in 2020, "Accelerate 2025" aimed to enhance diversity in recruitment and retention. It set a target of having 50% of managing partners and directors from underrepresented backgrounds by 2025.
Despite discontinuing the program, Knopp emphasized that the firm remains "unwavering in our commitment to fairness and inclusivity."
KPMG's decision aligns with a broader trend among major companies to scale back DEI initiatives, influenced by changes introduced under the Trump administration. President Trump signed an executive order prohibiting diversity programs in the federal government.
Knopp acknowledged that KPMG complies with ethical standards and regulations, including executive orders affecting federal contractors. The firm receives substantial revenue from federal contracts, including over $406 million from the Department of Defense.
An anonymous KPMG US employee indicated that Knopp's memo has been well-received, with the firm holding Q&A sessions to address concerns about inclusivity.
Deloitte, another Big Four competitor, has also terminated DEI programs due to the need to comply with federal laws.