‘No Longer Business-Critical’: Microsoft Axes DEI Team

By: Georgia | Published: Jul 17, 2024

Recently, Microsoft made a tough call by laying off its diversity, equity, and inclusion (DEI) team, stirring significant internal debate. 

A leaked email featured in Business Insider showed the DEI team leader pointing out that diversity is no longer seen as “business critical,” marking a dramatic shift in Microsoft’s focus.

Tech Companies Pull Back on DEI Initiatives

After the momentum of the 2020 Black Lives Matter protests, tech giants like Microsoft, Google, Meta, and Zoom had bolstered their DEI efforts. 

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The Google headquarters building with the Google logo prominently displayed on the glass facade

Source: Wikimedia Commons

But now, there’s a noticeable pullback. It seems the industry is rethinking its approach to diversity at a time when social change continues to evolve.

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Details Kept Under Wraps

Microsoft has kept quiet about the exact number of DEI staff affected by the layoffs

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Microsoft campus building with the Microsoft logo on a sign in front of the building, surrounded by trees and a clear blue sky

Source: Wikimedia Commons

This secrecy is part of a bigger trend within the company as it adjusts to new economic realities and shifts in business strategy.

Microsoft Reaffirms Commitment to Diversity

Despite the recent job cuts, Microsoft is adamant that its dedication to diversity hasn’t wavered. 

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Aerial view of the Microsoft campus, showing multiple buildings, roads, and green spaces

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“Our focus on diversity and inclusion is unwavering and we are holding firm on our expectations,” said a company spokesperson, attempting to put to rest any doubts about their ongoing commitment.

Internal Email Shows Employee Frustration

Discontent within Microsoft came to light through a leaked email, where a former DEI leader expressed disappointment over the company scaling back on the DEI initiatives that had been amped up during the BLM protests. 

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Close-up of a tablet screen displaying Microsoft Office applications like Outlook, Word, Excel, PowerPoint, and others

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This leak has revealed a significant shift in internal sentiment and strategy.

Microsoft’s Diversity Goals in Question

Microsoft’s goal to double its Black leadership by 2025 now seems more uncertain than ever. 

Microsoft CEO Satya Nadella speaking at a conference, with a screen behind him showing "Microsoft loves Linux."

Source: Wikimedia Commons

With little to no updates provided, employees and onlookers alike are left wondering about the future of these diversity pledges.

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Nadella’s Diversity Promises Revisited

Microsoft CEO Satya Nadella had previously emphasized that their diversity efforts would be sustained over time, not just in moments of social pressure. 

Microsoft CEO Satya Nadella speaking at an event with a red background, wearing a suit and glasses with a microphone headset.

Source: Wikimedia Commons

However, the recent developments and leaked communications suggest a potential step back from these long-term diversity efforts.

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Widespread Layoffs Across Tech

It’s not just Microsoft making cuts. 

Close-up of a hand holding a Microsoft Surface device against a plain background, showcasing the Microsoft logo

Source: Surface/Unsplash

The company is part of a larger trend across the tech industry, where giants are downsizing significantly as they navigate post-pandemic market shifts. 

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Mass Layoffs Last Year

2023 saw Microsoft announcing 10,000 job cuts.

Microsoft office building with the Microsoft logo on the exterior, clear blue sky in the background

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These layoffs were part of a strategic adjustment aimed at stabilizing the company during these unpredictable economic times.

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Comparing Layoffs in the Tech Sector

Around the same time, Amazon announced it would let go of 18,000 employees.

Meta headquarters sign displaying the Meta logo and address "1 Hacker Way" in front of trees

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Meta also cut about 10,000 jobs, showing a common industry response to current financial strains.

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Radical Downsizing

In one of the tech industry’s most drastic cuts, X, formerly Twitter, under Elon Musk, halved its workforce, bringing the total number of staff to under 2,000. 

Elon Musk smiling and speaking at a conference, wearing a black t-shirt and a microphone headset

Source: Wikimedia Commons

This move was aimed at drastically cutting costs and simplifying operations, marking a new, leaner era for the company.

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Reevaluating Diversity in Tech

As the tech industry faces ongoing changes, Microsoft’s decision to dismantle its DEI team poses big questions about how deeply tech giants are committed to diversity and inclusion. 

A close-up of diverse hands of different skin tones laid out on a wooden table, symbolizing unity and diversity

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These changes are reflective of the complex challenges of maintaining diversity initiatives amidst shifting corporate landscapes.

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