Google Abandons Diversity Hiring Goals Amidst Growing Scrutiny



Background:

In recent months, corporate diversity, equity, and inclusion (DEI) initiatives have faced increasing scrutiny in Washington, D.C., and from various legal challenges.

Google's Decision:

Google (GOOG, GOOGL) has announced that it will eliminate aspirational hiring goals related to representation.

Company Statement:

According to Google's spokesperson, the decision is based on a review of the company's DEI programs and the recent legal and executive actions in this area.

Washington, D.C.'s Role:

The US Attorney General Pam Bondi has issued a memo directing the Department of Justice's Civil Rights Division to investigate and penalize illegal diversity actions at private sector institutions receiving federal funds.

Silicon Valley Divide:

Google's move aligns with Meta (META), another Silicon Valley firm that has reversed certain diversity initiatives. However, companies like Apple (AAPL) and Microsoft (MSFT) continue to prioritize DEI.

Legal Context:

A recent US Supreme Court ruling determined that race-based quotas in college admissions violate the Constitution and Civil Rights Act.

Companies Defending DEI:

Costco (COST) and certain big banks, such as JPMorgan Chase (JPM) and Goldman Sachs (GS), remain committed to DEI efforts despite pressure from activist groups.

Google's Commitment:

Despite ending diversity hiring goals, Google plans to maintain its Employee Resource Groups and continue working with universities to enhance products and services for its users.

Google's Workforce Demographics:

In 2024, Google's US workforce was predominantly white (45.3%), Asian (45.7%), with smaller percentages of Black (5.7%), Hispanic (7.5%), and Native American (0.9%). The gender distribution remained skewed towards males (66.2%).