On February 22, 2025, Citigroup announced adjustments to its Diversity, Equity, and Inclusion (DEI) policy, becoming one of the many American companies in recent times to scale back their diversity goals. This move reflects a reassessment of DEI strategies by businesses amidst changing political environments.
The CEO of Citigroup, Jane Fraser, stated in a memo to employees on Thursday, February 20, that the company will no longer require specific quotas for diverse candidates during recruitment, nor will they set diversity quotas within internal teams.
Fraser emphasized, “Our goal remains to build an inclusive, representative team, but we will achieve this through more flexible means.”
Additionally, the team responsible for DEI affairs has been renamed the Talent Management & Engagement team to reflect its broader functional scope.
Previously, Citigroup had set diversity percentage goals in 2022, including at least 43.5% female, 11.5% Black, and 16% Latinx employees in roles ranging from assistant vice presidents to managing directors. However, these specific percentage goals have now been abolished.
Citigroup’s decision is not isolated, as many companies are readjusting their diversity strategies to adapt to the current business environment and human resource needs.
Other major corporations such as Amazon, Meta, Target, Walmart, and Goldman Sachs have also been adjusting or reducing DEI programs, focusing instead on more comprehensive corporate culture and talent development strategies.
For example, Goldman Sachs recently eliminated the requirement for two diverse members on its board of directors, while JPMorgan Chase has emphasized continued support for diversity initiatives without setting specific quotas.
DEI programs have been in place in the United States for decades, but gained widespread attention and momentum after the George Floyd incident in 2020. Critics argue that these programs overly focus on demographic statistics and overlook individual abilities and performance, leading to unnecessary restrictions in human resource decision-making.
In June 2023, the US Supreme Court ruled that race-based admissions policies at universities were unconstitutional, further fueling legal challenges to DEI programs.
On January 20, 2025, Donald Trump was inaugurated as the President of the United States, signing an executive order on his first day in office to close all DEI-related offices and positions in federal agencies, abolishing associated programs, funding, and contracts.
With changes in the political and legal landscape, American businesses are reevaluating their DEI strategies. Future diversity policies may place greater emphasis on employees’ skills and contributions rather than relying on mandatory quotas to determine hiring standards.