Partners are doing the “complete opposite” to a succession of big-name vendors that have rowed back on DEI initiatives in recent weeks, a marketing expert has claimed.
In what Canalys has branded a “worrying trend”, last month saw Microsoft reportedly disband a DEI team and AMD and Motorola cut diversity criteria from exec bonus plans (see FT report, here).
Such moves (see full recap, bottom) are being seen in some quarters in the context of a wider anti-woke pushback in corporate US.
“IT partner retrenchments not hitting headlines in same way”
In the UK channel, DEI investment shows no sign of waning, according to Julie Simpson, CEO of marketing agency ResourceIT, however.
“I think despite the vendors and big businesses making those decisions, we see a completely opposite activity in small to medium-sized companies,” she told IT Channel Oxygen (see above).
And that’s a hypothesis at least partially supported by analyst Canalys.
According to Canalys’ 2024 Sustainability Survey, DEI ranked second among the topics partners believe IT vendors and partners should prioritise further – second only to working conditions.
“While some vendors may be walking back, IT partner retrenchments are not hitting headlines in the same way,” Elsa Nightingale, Principal ESG Analyst at Canalys told IT Channel Oxygen.
That said, 22% of partners reported having no DEI policies whatsoever, Canalys also found.
“Those who fail to recognise that DEI fuels innovation will get left behind”
Nightingale urged vendors and partners not to lose sight of the benefits DEI investment can bring.
“We are seeing a worrying trend of IT vendors walking back on DEI commitments. ‘DEI hushing’ is rife – where companies are culling mention of DEI on earnings calls,” Nightingale said.
“More worrying; some companies have pulled the plug on financial pledges made or DEI targets set. Most stark is the message sent by the IT companies – including Google, Microsoft, Meta, Zoom and others – where certain DEI roles have been eliminated.
“Clearly, US anti-woke pushback, and upcoming elections are having an impact. But, with most data pointing to DEI as fuel for innovation, productivity and retention, those who fail to recognise this will undoubtedly be left behind.”
Simpson said the DEI withdrawals have her questioning whether the commitments vendors made to DEI back in 2020 were “real”, meanwhile.
“I think people were just put into roles because everyone wanted to demonstrate they cared about DEI. And because of that lack of experience, programmes have failed,” she said.
Simpson added: “The other thing I feel is that the people making the decisions aren’t perhaps the consumers of the programmes they’re supporting. If you don’t experience it, how can you know how valuable it is?
“I hope there will be a new surge and people will go into this with a more experienced view and think more strategically about why DEI is important and what needs to be included in their programmes, how it’s measured and how people are supported.”
Vendor DEI flashpoints…..
Microsoft – Disbanded a DEI team at the start of July, citing “changing business needs”, according to a report by Business Insider. The move was reportedly met with despondence from the vendor’s own DEI staff, with one telling fellow employees in a leaked email that they felt DEI programmes are “no longer business critical or smart as they were in 2020”.
AMD – Having included a DEI metric in the annual cash bonus for executives in 2023, AMD removed it in 2024 and replaced it with “workforce strategic objectives”, according to a report last week by the FT.
Motorola – Also dropped DEI from its pay plans, according to the same FT report.
Google and Meta – Both last year cut staffers and downsized programmes that fell under DEI investment, according to a CNBC report in December. The moves came amid a wider 44% annual drop in DEI-related job postings.
Zoom – Cut DEI staff amid round of layoffs in February, according to a Bloomberg report. In a change of strategy, the videoconferencing vendor is now hiring outside consultants to engage its employees on DEI efforts, COO Aparna Bawa reportedly told staff.
Doug Woodburn is editor of IT Channel Oxygen
