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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. 

Google kills diversity hiring targets, reviewing other DEI programs

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.

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World’s largest chipmaker TSMC says it has discovered potential trade secret leaks

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World's largest chipmaker TSMC says it has discovered potential trade secret leaks

TSMC workers walk down a hallway in a chipmaking fab in Taiwan. The company is building three such plants in Arizona.

TSMC

Taiwan Semiconductor Manufacturing Co. said on Tuesday that it had detected “unauthorized activities” that lead to the discovery of potential trade secret leaks.

The world’s biggest semiconductor manufacturer told CNBC that it has taken “strict” disciplinary action against the personnel involved and that it has also launched legal proceedings.

“TSMC maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company’s interests,” the company said.

“Such violations are dealt with strictly and pursued to the fullest extent of the law. We remain committed to safeguarding our core competitiveness and the shared interests of all our employees.”

Semiconductors have grown in strategic importance in recent years as they have become the key pillar in the boom in artificial intelligence models and applications. Rising geopolitical tensions has put the spotlight on the competitive technological advantages of major firms in the chip supply chain like TSMC and other leaders across the board.

TSMC, headquartered in Taiwan, dominates the market for the manufacturing of the world’s most advanced chips and counts major tech giants including Apple and Nvidia as clients.

As the case is now under judicial review, TSMC is unable to provide further information, the firm said.

TSMC identified the issue early due to its “comprehensive and robust monitoring mechanisms,” the company said, adding that it carried out swift internal investigations.

Nikkei Asia, citing multiple sources familiar with the matter, reported on Tuesday that several former employees of TSMC are suspected of attempting to obtain critical proprietary information on 2-nanometer chip development and production while they were still working at the company.

Production of the 2-nanometer chip is among the leading edge manufacturing processes in the semiconductor industry currently. TSMC said it did not have any additional information to share when asked by CNBC about the Nikkei report.

As the world’s leading chipmaker, TSMC has a treasure trove of intellectual property. By its own account, the company has previously said it has more than 200,000 trade secrets recorded in its internal system.

It is not the first time that TSMC has been the target for potential theft. In 2018, a Taiwanese court indicted a former employee for copying trade secretes related to the 28-nanometer fabrication process, with intent to transfer them to a semiconductor company in mainland China.

In 2023, ASML, which makes machines that are required to manufacture the most advanced chips, said that it discovered that a former employee in China had misappropriated data related to its proprietary technology.

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Hims & Hers stock falls 10% on revenue miss

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Hims & Hers stock falls 10% on revenue miss

The Hers app arranged on a smartphone in New York, US, on Wednesday, Feb. 12, 2025. 

Gabby Jones | Bloomberg | Getty Images

Shares of Hims & Hers Health fell 9% in extended trading on Monday after the telehealth company reported second-quarter results that missed Wall Street’s expectations for revenue.

Here’s how the company did based on average analysts’ estimates compiled by LSEG:

  • Earnings per share: 17 cents adjusted vs. 15 cents
  • Revenue: $544.8 million vs. $552 million

Revenue at Hims & Hers increased 73% in the second quarter from $315.6 million during the same period last year, according to a release. Hims & Hers reported a net income of $42.5 million, or 17 cents per share, compared to $13.3 million, or 6 cents per share, during the same period a year earlier.

For its third quarter, Hims & Hers said it expected to report revenue between $570 million to $590 million, while analysts were expecting $583 million. The company said its adjusted EBITDA for the quarter will be between the range of $60 million to $70 million. Analysts polled by StreetAccount were expecting $77.1 million.

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Hims & Hers has faced controversy in recent months over its continued sale of compounded GLP-1s, which are cheaper, unapproved versions of the blockbuster diabetes and weight loss drugs. Compounded drugs can be mass produced when brand-name treatments are in shortage, but the U.S. Food and Drug Administration announced in February that ongoing supply issues had been resolved.

Some telehealth companies, including Hims & Hers, have continued to offer the compounded medications. It’s legal for patients to access personalized doses of the knockoffs in unique cases, like if they are allergic to an ingredient in a branded product, for instance. Hims & Hers has said consumers may still be able to access personalized doses through its site if clinically applicable. 

In June, Hims & Hers shares tumbled more than 30% after a short-lived collaboration with Novo Nordisk fell apart. The drugmaker said Hims & Hers “failed to adhere to the law which prohibits mass sales of compounded drugs” under the “false guise” of personalization.

Hims & Hers reported adjusted EBITDA of $82 million for its second quarter, up from $39.3 million last year and above the $73 million expected by StreetAccount.

Hims & Hers will host its quarterly call with investors at 5 p.m. ET.

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YTD chart of Hims & Hers Health.

–CNBC’s Annika Kim Constantino contributed to this report

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Palantir tops $1 billion in revenue for the first time, boosts guidance

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Palantir tops  billion in revenue for the first time, boosts guidance

Palantir reports $1 billion in revenue for the first time

Palantir topped Wall Street’s estimates Monday, surpassing $1 billion in quarterly revenue for the first time, and hiking its full-year guidance.

Shares rallied more than 5%.

Here’s how the company did versus LSEG estimates:

  • Earnings per share: 16 cents adj. vs. 14 cents expected
  • Revenue: $1.00 billion vs. $940 million expected

The artificial intelligence software provider’s revenues grew 48% during the period. Analysts hadn’t expected the $1 billion revenue benchmark from the Denver-based company until the fourth quarter of this year.

“The growth rate of our business has accelerated radically, after years of investment on our part and derision by some,” wrote CEO Alex Karp in a letter to shareholders. “The skeptics are admittedly fewer now, having been defanged and bent into a kind of submission.”

The software analytics company also boosted its full-year outlook guidance. For the full year, Palantir now expects revenues to range between $4.142 billion and $4.150 billion, up from prior guidance of $3.89 billion to $3.90 billion.

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For the third quarter, Palantir forecast revenues between $1.083 billion and $1.087 billion, beating an analyst estimate of $983 million. Palantir also lifted its operating income and full-year free cash flow guidance.

Palantir’s U.S. revenues jumped 68% from a year ago to $733 million, while U.S. commercial revenues nearly doubled from a year ago to $306 million.

The software analytics company has seen a boost from President Donald Trump‘s government efficiency campaign, which included layoffs and contract cuts. Palantir’s U.S. government revenues jumped 53% from the year-ago period to $426 million.

“It has been a steep and upward climb — an ascent that is a reflection of the remarkable confluence of the arrival of language models, the chips necessary to power them, and our software infrastructure,” Karp wrote in a letter to shareholders.

During the quarter, Palantir said it closed 66 deals of at least $5 million and 42 deals totaling at least $10 million. Total value of its contracts grew 140% from last year to $2.27 billion.

Net income rose 144% to about $326.7 million, or 13 cents a share, from about $134.1 million, or 6 cents per share a year ago.

Palantir shares have more than doubled this year as investors bet on the company’s AI tools and contract agreements with governments.

Its market value has accelerated past $379 billion and into the list of top 20 most valuable U.S companies, surpassing SalesforceIBM and Cisco to join the top 10 U.S. tech companies by market cap. Shares hit a new high Monday.

At its size, buying the stock requires investors to pay hefty multiples.

Shares currently trade 276 times forward earnings, according to FactSet. Tesla is the only other top 20 with a triple-digit ratio at 177.

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Palantir one-day stock chart.

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