Walmart ditches DEI

The tide is turning against Diversity, Equity, and Inclusion (DEI), the corporate fad that promised unity but delivered division. Walmart, America’s largest retailer, is the latest major company to cut ties with DEI programs, joining a growing list of giants like Ford, Google, Meta, and Tesla.

This week, Walmart confirmed it’s dismantling its Racial Equity Center, a five-year experiment born out of the 2020 racial reckoning following George Floyd’s death. The retailer is also scrapping the controversial term “Latinx” from its corporate language, acknowledging that just 4% of Hispanics actually use the label. But the most striking shift? Walmart is ditching the term “diversity” entirely, choosing instead to focus on fostering “belonging.”

It’s a quiet but profound pivot. For years, DEI initiatives were heralded as the moral compass of corporate America. But as the dust settles, research shows these programs often cause more harm than good, fostering division rather than unity.

The False Promise of DEI

A groundbreaking Rutgers University study confirmed what many suspected: DEI initiatives stoke racial tension instead of quelling it. The study found that exposure to DEI materials — including the works of popular “anti-racist” authors like Ibram X. Kendi and Robin DiAngelo — heightened hostility between racial groups. Participants became more likely to see prejudice where none existed and more inclined to punish perceived offenders.

“DEI training doesn’t heal divisions; it widens them,” the study suggested. Yet the mainstream media buried these findings, with outlets reportedly killing coverage at “the highest editorial levels.”

This isn’t new information. A 2016 Harvard Business Review article warned that the effects of diversity training are fleeting and can even backfire, activating biases instead of neutralizing them.

So why did corporations fall for it?

A Hysteria-Fueled Spending Spree

In 2020, amid nationwide protests and mounting pressure, corporate America panicked. Companies raced to showcase their anti-racist credentials, funneling $7.5 billion into DEI programs that year alone. The message was clear: Pay up or face the wrath of cancel culture.

Consultants promised salvation through training sessions, implicit bias workshops, and endless seminars. Today, over half of American workers are still subjected to these divisive practices, according to Pew Research.

But the results? A workplace more obsessed with differences than ever before. Teams fractured under the weight of constant accusations of bias and microaggressions. And while DEI consultants raked in millions, morale and productivity suffered.