Microsoft faces backlash over DEI team layoffs amid diversity commitments

Microsoft has laid off its internal team dedicated to diversity, equity, and inclusion (DEI) due to 'changing business needs'

After Microsoft laid off its internal team dedicated to diversity, equity, and inclusion (DEI), a team leader criticised the company for insufficiently supporting the initiative.

A team leader stated in an email to thousands of employees, viewed by Business Insider, that “true systems-change work associated with DEI programmes everywhere are no longer business critical or smart as they were in 2020”.

The email mentions that the team was eliminated due to "changing business needs" effective July 1, though the exact number of impacted employees remains unknown.

Following the 2020 murder of George Floyd by a Minneapolis police officer and the subsequent historic protests, numerous technology companies, including Microsoft, committed to enhancing their diversity initiatives.

 

In 2020, Microsoft announced its goal to double the number of leaders of colour in the company by 2025. However, the progress toward this goal is currently unclear.

Tech companies scale back DEI efforts

Despite these commitments, several tech companies seem to be scaling back their diversity efforts. Bloomberg reported that Zoom Video Communications Inc recently laid off a team focused on DEI. CNBC noted that tech giants Google and Meta also reduced their DEI programmes last year.

In an official statement, Microsoft spokesperson Jeff Jones said, “Our D&I commitments remain unchanged. Our focus on diversity and inclusion is unwavering and we are holding firm on our expectations, prioritising accountability, and continuing to focus on this work.”

Microsoft often reduces its workforce around the start of its new financial year. Recently, layoffs have become more frequent at Microsoft and other tech companies. Last year, Microsoft revealed plans to let go of 10,000 employees in early 2023, and it has implemented further layoffs since then.

Microsoft’s diversity programme

Following the death of George Floyd in 2020, Microsoft announced its plan to double the number of managers and senior employees of colour by 2025. The company further said that this initiative complies with civil rights laws.

However, this initiative came under the scanner with the US Labour Department investigating whether the company’s plan is a violation of the Civil Rights Act because it “appears to imply that employment action may be taken on the basis of race.”

Following this, the company, in a blog post, said, “The letter asked us to prove that the actions we are taking to improve opportunities are not illegal race-based decisions.”
 

Following an executive order issued by the Trump administration, government contractors such as Microsoft were prohibited from providing specific forms of racial sensitivity and other diversity training programmes.

Microsoft settles race discrimination case

In September that year, Microsoft reached a $3 million settlement with the Labour Department over accusations of race discrimination in its hiring practices. As part of the agreement, Microsoft committed to undergoing a review to ensure non-discriminatory hiring practices, as outlined in a letter from Craig Leen, director of the Labour Department’s Office of Federal Contract Compliance Programs.

The letter stated, “Although contractors must establish affirmative action programs to set workforce utilisation goals for minorities and women based on availability, contractors must not engage in discriminatory practices in meeting those goals.”