Since US president Donald Trump’s re-election, many organisations have dropped their diversity, equity and inclusion (DEI) policies, but a new survey has highlighted the far-reaching consequences of this decision.
Decline in employee morale, decline in retention of diverse employees, fewer women in leadership roles and reputational damage were only a few of the consequences, according to Resume.org, who surveyed 965 US companies via Pollfish in July 2025.
One in five of the companies surveyed reported eliminating their DEI programs entirely since Trump’s 2024 election win. As a result, nearly half (47 per cent) of these organisations have seen a decline in employee morale.
More than a third have observed a drop in the retention of diverse employees (36 per cent) and a decline in their ability to attract diverse talent (35 per cent).
A quarter of organisations said they suffered reputational damage as a result of cutting DEI, while 18 per cent said they saw an increase in workplace discrimination or bias incidents.
Twenty four per cent of organisations cutting DEI also saw fewer women in leadership roles.
Among companies that eliminated DEI, 57 per cent reported hiring fewer underrepresented workers. In particular, 37 per cent said hiring of women of colour has declined, and about 13 per cent report fewer white women being hired.
“We are worse off as a company and our place in society since dropping the DEI policy,” one respondent told the survey.
Head of career advising at Resume.org Kara Dennison said removing DEI signals that inclusion isn’t a priority for the organisation, which in turn, is encouraging harmful workplace behaviour.
“DEI fosters belonging and psychological safety, which are critical to employee engagement and loyalty. Without it, trust erodes and turnover increases,” Dennison said in a statement, adding that removing DEI creates a “toxic culture, weakens future leadership and puts both reputation and performance at risk”.
The survey showed the top reason for cutting DEI altogether was a shift in the political climate. This was cited by 74 per cent of business leaders.
Other business leaders expressed frustration with DEI efforts, describing them as counterproductive or harmful to workplace culture. Several saw DEI initiatives as performative or divisive.
And yet, others voiced disappointment over the consequences of pulling back on DEI initiatives, saying its reduced morale, reputational damage and went backwards on progress made in recent years to create a safe workplace for everyone.
“DEI initiatives shouldn’t be political; they should be strategic,” Dennison said.
“They can help attract top talent, foster inclusive leadership, and boost retention, especially among younger and more diverse employees. Companies that abandon DEI risk reputational harm, disengagement, and an inability to adapt to an increasingly global, values-driven marketplace.”