Goldman Sachs and Deloitte Scale Back Diversity Programmes Amid Political Pressure

Major financial institutions Goldman Sachs and Deloitte have begun dismantling their diversity initiatives in response to mounting political pressure from the Trump administration. The moves represent a significant shift in corporate America’s approach to workplace diversity and inclusion.

Goldman Sachs has eliminated its groundbreaking 2020 policy that required companies seeking initial public offerings to have at least one diverse board member. The investment banking giant cited recent legal developments, specifically referencing Nasdaq’s reversed requirement for board diversity disclosures, as the catalyst for this change.

Deloitte US has taken substantial steps by instructing 15,000 government-contracted staff to remove pronouns from email signatures by 7 February. The consultancy firm is also terminating its diversity, equity and inclusion (DEI) programme and discontinuing its annual diversity report. These changes align with what Deloitte describes as “emerging government client practices and requirements”.

The retreat from DEI initiatives extends beyond these two organisations. Tech giants including Google’s parent company Alphabet, Meta Platforms, and Amazon have announced similar rollbacks of their diversity programmes. These decisions come amid increasing scrutiny from conservative politicians and growing pressure from the White House.

The Trump administration’s recent executive orders targeting federal DEI policies have created a ripple effect throughout the private sector. While these orders technically apply only to government entities, the administration has signalled its intention to expand their reach to private companies through the US attorney general’s office.

Industry observers note that these corporate policy changes mark a significant departure from the diversity commitments made following the Black Lives Matter protests. The shift demonstrates the profound impact of political pressure on corporate governance and workplace culture in the current climate.