Sundar Pichai, CEO of Google and Alphabet, attends the inauguration of a new hub in France dedicated to the artificial intelligence sector, at the Google France headquarters in Paris, France, on Feb. 15, 2024.
Gonzalo Fuentes | Reuters
After Google scrapped its diversity, equity and inclusion, or DEI, hiring aspirations in February, CEO Sundar Pichai addressed the matter with his employees at a company all-hands meeting.
“We believe in building a representative workforce,” Pichai said, according to audio obtained by CNBC. “We’re a global company, we have users around the world, and we think the best way to serve them well is by having a workforce that represents that diversity, and we’ll continue to do that.”
“At the same time, as a company we will always have to comply with local laws,” Pichai added.
Among the most notable changes by Google thus far was with Melonie Parker, the company’s chief diversity officer. As of February, her title has been changed to vice president of Googler engagement.
Google’s approach to DEI is emblematic of changes that companies across the U.S. are making to their DEI programs in the wake of President Donald Trump’s election and initial actions in his return to the White House.
Over the past decade, Silicon Valley and other industries used DEI programs to root out bias in hiring, promote fairness in the workplace and advance the careers of women and people of color – demographics that have historically been overlooked.
While DEI started as an umbrella acronym to even the playing field, it’s become a loaded term.
In 2023, the Supreme Court ruled against Harvard University’s affirmative action admission policies – a decision that had implications for how corporations hire. In one of his first acts of his second term, President Donald Trump signed an executive order in January to end the government’s DEI programs and put federal officials overseeing those initiatives on leave.
The order directs “all departments and agencies to take strong action to end private sector DEI discrimination, including civil compliance investigations.” The administration has targeted nearly 50 companies that it’s deemed to be in violation of its anti-DEI rules, Bloomberg reported in February.
Among the first of those targets is the Walt Disney Company. The Federal Communications Commission informed the company on Friday that it will begin an investigation into the DEI efforts at the media giant.
Trump has shown he’s willing to fault DEI policies for human tragedy.
Following a midair collision between an American Airlines regional jet and a Black Hawk military helicopter above Washington in January, Trump blasted the Biden administration’s DEI policies for the crash without citing any evidence. Trump claimed DEI “could have been” to blame for the deadliest plane crash in the U.S. since 2001.
“When you have the president blaming DEI for a plane crash, I think it makes sense that companies don’t want to be out there no matter how they define it internally,” Emerson said.
Despite DEI becoming such a divisive term, companies are not necessarily ending their efforts. They’re rebranding them. Many companies are continuing DEI work but using different language or rolling it under less charged terminology, like “learning” or “hiring.”
Paradigm’s CEO Joelle Emerson is an advocate for diversity and inclusion.
Source: Paradigm
DEI by any other name
Joelle Emerson has worked since 2014 as a consultant for several hundred clients on workplace performance as well as diversity and inclusion strategies, but last year, she changed the language used to describe her digital platform Paradigm.
Whereas before Paradigm marketed itself as helping clients “harness the power of diversity and inclusion to create a culture where everyone can do their best work and thrive,” the company’s website now states that its solutions “create an inclusive, high-performance culture where everyone can do their best work and thrive.”
Paradigm began using DEI in 2020 after the term proliferated in the corporate response to protests across the country in the wake of George Floyd’s death.
“We started using that a lot on our websites so that companies searching for ‘DEI’ could find us,” Emerson told CNBC. “Pre-election, as we were seeing a lot of the backlash, we reduced our use of the acronym because I didn’t think it would be the best description of what we do.”
Devika Brij, who does similar work through her Brij The Gap consulting firm, detailed her efforts to distinguish her work in a newsletter sent out in February titled “Tailored Career and Leadership Development Isn’t DEI.” For companies like Brij’s, the re-branding is critical to the future of their business – some of Brij’s clients have slashed their DEI budgets by as much as 90% since 2023, she said at the time.
It’s not just consulting firms that are rebranding DEI.
JPMorgan in March announced that it will replace “equity” with “opportunity” in a rebrand of its DEI program. Walmart in November said it was shifting from DEI to saying “Walmart for everyone.” Among Fortune 100 companies, there was a 22% decrease in the use of terms like “DEI” and “diversity” and a 59% increase in terms like “belonging” between 2023 and 2024, according to Paradigm.
Emerson said 2023 marked the turning point for DEI in Silicon Valley.
That’s when Google began getting rid of staffers who were in charge of recruiting people from underrepresented groups, CNBC reported. The company also let go of DEI leaders under Parker.
Amazon also reorganized its DEI group in 2023 and brought global teams under one umbrella named “Inclusive Experiences & Technology.” The company renamed the group to better represent the nature of the work, a company spokesperson told CNBC, adding that Amazon remains committed to building a diverse and inclusive company.
As part of that overhaul, Amazon’s Candi Castleberry changed her vice president title from “VP of Global Diversity Equity and Inclusion” to “VP of Inclusive Experiences & Technology.”
Tech’s DEI rollback has accelerated in 2025.
Google, which has cloud-computing contracts with federal agencies, announced in February that it would retire its aspirational hiring targets following Trump’s executive orders. Google’s commitments for 2025 had included increasing the number of people from underrepresented groups in leadership by 30% and more than doubling the number of Black workers at non-senior levels.
“Our values are enduring, but we have to comply with legal directions depending on how they evolve,” Pichai told staffers at the February all-hands meeting.
He and Parker were answering a question from staffers about how the company’s DEI programs would be impacted given Trump’s recent executive orders.
“As a federal contractor, we have been reviewing all our programs, all our initiatives,” Parker said. “With regards to training, we’re going to deprecate, or stop or sunset, a number of our training programs that are focused on DEI.”
A spokesperson for Google did not clarify which of the company’s DEI programs have been cut.
Pichai went on to assure workers that Google would continue to support its employee resource groups. Those are employee-led networks within the company that focus on specific demographic or affinity groups, such as “Women@Google” and “Black Googler Network.”
Those comments, however, came before the Equality Employment Opportunity Commission published guidance in March that listed ERGs as a potential violation of Trump’s executive order if they are exclusionary. Google’s ERGs are open to all employees and do not exclude any protected groups, the company spokesperson told CNBC.
“Based on the current legal climate, we’re reviewing our DEI programs and making changes where needed,” the Google spokesperson said in a statement.
Melonie Parker speaks on stage during The 37th Annual Hispanic Heritage Awards at The Kennedy Center on Sept. 5, 2024 in Washington, DC.
Paul Morigi | Getty Images
The sensitivity of the term DEI came to the forefront earlier this month at Austin’s annual South by Southwest conference. There, Google and Oracle had been slated to participate in a panel, originally titled “Successful Workplaces: Balancing Growth and Well-Being.”
“Attendees will leave with actionable insights to align business success with a thriving workplace culture,” an early description of the panel noted.
Oracle dropped out from the panel in February. That month, panel organizers informed participating companies that they were considering changing the focus of the conversation to the state of DEI in the workplace.
“The fact that the Trump administration took such an aggressive approach to DEI just made obvious, in our view, how timely this discussion was,” said panel organizer Luis Gramajo, founder of nonprofit Sunday Afternoon Foundation, which helped organize that particular SXSW panel.
The Google panelist dropped out in March after the panel’s name was officially changed to “Post-DEI Workplace: Tech Companies Managing Through Turmoil.”
“We went through I don’t know how many prep calls, we changed the title of this eight plus times, we lost people who were afraid to be on this panel,” said Chelsea Toler, one of the SXSW panelists and a co-founder at Logictry, an Austin startup.
Google was not informed of the change until late February, the company spokesperson told CNBC, adding that the panel’s new topic was outside of the employee’s role and experience.
“We had a couple different panelists back out because this conversation, which is so important, has become kind of nuclear at this point, which is wild,” said Diana Ransom, Inc. Magazine executive editor and the panel’s moderator, at the event.
Gramajo said he doesn’t begrudge any of the panelists or companies that pulled out of the panel.
“They are, as we all are, navigating an incredibly complex and uncertain time, where the rules are not clear,” he said.
Amazon CEO Andy Jassy looks on during an Amazon Devices launch event in New York City, U.S., February 26, 2025.
Brendan McDermid | Reuters
Amazon has also pulled back on DEI.
The company told staffers in December that it was halting some of its DEI programs as part of a broader review of those initiatives. It also eliminated references to inclusion and diversity in its annual report while altering a website to remove sections titled “Equity for Black people” and “LGBTQ+ rights.”
Amazon CEO Andy Jassy characterized the DEI eliminations as being part of Amazon’s ongoing cost-cutting efforts.
“If you look at us, kind of like a lot of other companies, particularly after George Floyd, and particularly because we’re so decentralized, we had a lot of programs in this area,” Jassy told staffers earlier this month, according to audio obtained by CNBC. “We had about 300 programs.”
Amazon began evaluating its DEI programs “a couple years ago,” Jassy said.
“We realized there were several of them where we weren’t getting enough value out of them for us to be investing in that way and those programs, we streamlined those,” Jassy said. “And in the programs where we were having a real impact, we doubled down.”
It’s unclear which programs Amazon cut and which it has expanded.
Continuing the work
“The acronym of DEI is completely unhelpful,” said Aubrey Blanche-Serrallano, vice president of equitable operations at Culture Amp, a human resources platform. “Diversity is incredibly valuable and important, but that specific acronym obscures a lot of what we’re talking about.”
For all the backlash toward DEI in Washington, recent studies show that this type of work remains popular among workers and companies.
Pew Research in 2023 found that 86% of workers say they have a neutral-to-favorable opinion about increasing diversity, equity, and inclusion in the workplace. Paradigm, meanwhile, published a study last year which found that 73% of companies included diversity, equity and inclusion in their company values, on par with 2023.
“The feeling of the moment doesn’t match a lot of the data I’m looking at,” Blanche-Sarellano said.
The experts that spoke with CNBC said they’ve yet to lose any clients as a result of the DEI backlash. To the contrary, they said they are optimistic that organizations will be forced to be more thoughtful about their plans and do away with “performative” aspects of DEI that did little to move the needle.
Experts said one key example of performative actions were when companies signaled support for social media movements, like 2020’s Blackout Tuesday, without any meaningful action to follow. Another example were companies that added chief diversity officers to their ranks without giving them formalized decision-making power or budgets.
Among the changes happening now are companies shifting away from diversity reports, which tracked hiring based on different genders and ethnicities, and focusing instead on tracking the rates at which promotions and attrition happen, Emerson said.
Companies are also changing how they have candidates apply for programs, Emerson said. With internships designed for specific ethnicities, for example, candidates might no longer simply check whether they are black or Hispanic but instead write an essay about their background, she said.
Some experts are helping their clients calculate how much risk they may face by continuing DEI work under different names.
“There’s a lot of legal gray area right now,” Blanche-Sarellano said. “At the end of the day, they want to focus on investing in their employees, not spend all their resources on a lawsuit.”
Y-Vonne Hutchinson, chief executive officer of ReadySet, speaks during the Bloomberg Breakaway CEO Summit in New York, U.S., on Tuesday, June 18, 2019.
Mark Kauzlarich | Bloomberg | Getty Images
Companies have to weigh the risk of regulatory compliance and the potential for public backlash against the cost of doubling down on DEI, said Y-Vonne Hutchinson, founder of ReadySet, a firm that helps clients “build adaptable organizations.”
“A lot of these companies have more diverse consumers,” she said. “They still have to think about what is going to make them money and viable businesses have to think about a global audience.”
ReadySet, for example, has what it calls a “DEI Risk Assessment Tool” which measures DEI risks across five dimensions: Legal and compliance, reputational, financial, cultural and workforce and operational risks.
By changing the terminology that is used, companies can prevent their work from being susceptible to misunderstanding, said Emerson, adding that her firm Paradigm is advising companies to be more specific about what they want to achieve.
“We should be more precise in the language we use,” she said.
But while some experts are encouraging companies to change their terminologies, others are advising those in the field to continue touting DEI.
That was the case at the Post-DEI panel at SXSW. The panelists challenged the notion that they should stop using it.
“DEI means everybody has a fair and equitable opportunity to succeed,” said Fran Harris, an entrepreneur based in Austin. “We have to remind people what DEI is – it is the work. It’s not just an acronym. It’s the work of creating equal opportunities, period.”
Panelists encouraged attendees to not succumb to fear.
“In this country, when we stop using our voice because we’re scared, we’ve lost,” Logictry’s Toler said.
CEO of Meta and Facebook Mark Zuckerberg, Lauren Sanchez, Amazon founder Jeff Bezos, Google CEO Sundar Pichai, and Tesla and SpaceX CEO Elon Musk attend the inauguration ceremony before Donald Trump is sworn in as the 47th U.S. president in the U.S. Capitol Rotunda in Washington, Jan. 20, 2025.
Saul Loeb | Via Reuters
Technology stocks plummeted Thursday after President Donald Trump’s new tariff policies sparked widespread market panic.
Apple led the declines among the so-called “Magnificent Seven” group, dropping nearly 9%. The iPhone maker makes its devices in China and other Asian countries. The stock is on pace for its steepest drop since 2020.
Other megacaps also felt the pressure. Meta Platforms and Amazon fell more than 7% each, while Nvidia and Tesla slumped more than 5%. Nvidia builds its new chips in Taiwan and relies on Mexico for assembling its artificial intelligence systems. Microsoft and Alphabet both fell about 2%.
The drop in technology stocks came amid a broader market selloff spurred by fears of a global trade war after Trump unveiled a blanket 10% tariff on all imported goods and a range of higher duties targeting specific countries after the bell Wednesday. He said the new tariffs would be a “declaration of economic independence” for the U.S.
Companies and countries worldwide have already begun responding to the wide-sweeping policy, which included a 34% tariff on China stacked on a previous 20% tax, a 46% duty on Vietnam and a 20% levy on imports from the European Union.
China’s Ministry of Commerce urged the U.S. to “immediately cancel” the unilateral tariff measures and said it would take “resolute counter-measures.”
The tariffs come on the heels of a rough quarter for the tech-heavy Nasdaq and the worst period for the index since 2022. Stocks across the board have come under pressure over concerns of a weakening U.S. economy. The Nasdaq Composite dropped nearly 5% on Thursday, bringing its year-to-date loss to 13%.
Trump applauded some megacap technology companies for investing money into the U.S. during his speech, calling attention to Apple’s plan to spend $500 billion over the next four years.
Zach Perret, CEO and co-founder of Plaid, speaks during the Silicon Slopes Tech Summit in Salt Lake City, Utah, U.S., on Jan. 31, 2020.
George Frey | Bloomberg via Getty Images
Plaid on Thursday announced a new funding round that values the fintech startup at $6 billion, down from $13.4 billion in 2021. The new funding will give some employees a way to cash out.
The $575 million round was led by a batch of new investors including Franklin Templeton, Fidelity and BlackRock. Existing backers NEA and Ribbit Capital also participated, Plaid said.
Plaid CEO Zach Perret said the startup saw a “substantial” growth year with record revenue and positive operating margins, though he did not provide specifics. The downsized valuation is a reflection of market conditions, he said.
“The reality is our business is much stronger and revenue has grown quite substantially,” Perret told CNBC. “The profitability of business has gotten quite a lot better, and yet we are impacted by market multiples, as many companies are.”
Plaid is “not ready” for an IPO quite yet, but this round will be the last private fundraise until the company lists on public markets, he said.
“An IPO is absolutely on our path for the coming years. We haven’t assigned a specific timeline to it,” Perret said. “We still have a lot of internal work to do. We’re not ready, which is why we didn’t consider it right now.”
Rise of secondary rounds
Plaid’s new funding allows employees to cash out of restricted stock units that expire at the end of the year. The startup will also use a portion of the proceeds to enable an employee tender offer.
“That’s the motivation for the round,” Perret said. “We think it’s important to give our employees options to sell and the ability to have liquidity, especially given that Plaid has been private for so long.”
Plaid is the latest in a string of late-stage, private deals designed to enable employees to cash out in private markets. Ramp, DataBricks, OpenAI and Stripe have all announced secondary financings that were designed to let some employees get liquidity. Few of those companies seem eager to wade into public markets. Recent volatility around stocks and lackluster performance of recent IPOs, including CoreWeave’s last week, has kept some companies on the sidelines.
“Volatility is definitely going to be one of the key factors,” Perret said, adding that it was too early to assess IPO market conditions for Plaid.
The startup has been on a roller coaster in private markets since it was founded a decade ago. Plaid was set to be bought by Visa for $5 billion in 2020 in a deal that was eventually called off amid regulatory scrutiny. The following year, it raised money at a $13.4 billion valuation. That also marked the peak for growth and technology valuations before the Federal Reserve began raising interest rates.
Plaid provides the plumbing to connect consumer bank accounts to popular finance apps. Its APIs let consumers link their bank accounts to services like Venmo, Robinhood and Coinbase. Since then, it’s expanded into direct bill pay, cyber security and data analytics. It also partners with major banks.
Cybersecurity is one of Plaid’s largest growth areas, Perret said. He pointed to financial fraud growing at 20% to 25% per year as a result of the boom in artificial intelligence.
“We’ve been leaning in to try to build tools to combat deep fakes and a lot of AI-driven financial fraud,” he said. “Unfortunately, this is a large market opportunity. It’s something that we’d actually like to be smaller. But it’s been an area of growth.”
Apple’s iPhone 16 at an Apple Store on Regent Street in London on Sept. 20, 2024.
Rasid Necati Aslim | Anadolu | Getty Images
Apple has made moves to diversify its supply chain beyond China to places like India and Vietnam, but tariffs announced by the White House are set to hit those countries too.
China will face a 34% tariff, but with the existing 20% rate, that brings the true tariff rate on Beijing under this Trump term to 54%, CNBC reported. India faces a 26% tariff, while Vietnam’s rate is 46%.
Apple was not immediately available for comment when contacted by CNBC.
Here’s a breakdown on Apple’s supply chain footprint that could be affected by tariffs.
China
The majority of Apple’s iPhones are still assembled in China by partner Foxconn.
China accounts for around 80% of Apple’s production capacity, according to estimates from Evercore ISI in a note last month.
Around 90% of iPhones are assembled in China, Evercore ISI said.
While the number of manufacturing sites in China dropped between Apple’s 2017 and 2020 fiscal year, it has since rebounded, Bernstein said in a note last month. Chinese suppliers account for around 40% of Apple’s total, Bernstein said.
Evercore ISI estimates that 55% of Apple’s Mac products and 80% of iPads are assembled in China.
India
Apple is targeting around 25% of all iPhones globally to be made in India, a government minister said in 2023.
India could reach about 15%-20% of overall iPhone production by the end of 2025, Bernstein analysts estimate. Evercore ISI said around 10% to 15% of iPhones are currently assembled in India.
Vietnam
Vietnam has emerged in the past few years as a popular manufacturing hub for consumer electronics. Apple has increased its production in Vietnam.
Around 20% of iPad production and 90% of Apple’s wearable product assembly like the Apple Watch takes place in Vietnam, according to Evercore ISI.
Other key countries
Malaysia is a growing manufacturing location for Apple for Macs and is facing a 25% tariff. Thailand is also a small hub for Mac production and will be hit with a 36% levy.
Apple also sources components from South Korea, Japan, Taiwan and the United States. Components may be shipped from one country to another before assembly takes place in China or elsewhere.
In February, Apple announced plans to open a new factory for artificial intelligence servers in Texas as part of a $500 billion investment in the U.S.
However, Apple does not have mass production in the United states. It produces only the Mac Pro in Texas.