In 2023, tech companies such as Google and Meta reduced funding for their DEI initiatives, despite previous commitments to diversity, equity, and inclusion.

• In the tech industry, DEI programs are retreating after vocal commitments following the murder of George Floyd in 2020.
• In 2023, some companies reduced their diversity, equity, and inclusion (DEI) staffing, leadership, learning and development programs, and external DEI group budgets by as much as 90%, according to CNBC sources.
• As the tech industry increasingly focuses on artificial intelligence, there is a risk that AI products may be less accurate or harmful to users if there are not enough diverse voices involved in their development.

Google, like many tech companies, established new programs following the murder of George Floyd in 2020 to support Black employees. Sundar Pichai, CEO, aimed to create sustainable equity for Google's Black+ community and make their products and programs beneficial to Black users.

Google pledged to enhance the representation of underrepresented groups in leadership by 30% by 2025, increase the number of Black workers at nonsenior levels by more than double by 2025, tackle representation issues in hiring, retention, and promotions, and improve the mental and physical health support for Black employees.

In response to the societal unrest following the Floyd killing, corporations pledged to invest millions of dollars to enhance diversity within their organizations and support external groups working on DEI initiatives.

But in 2023, some of those programs are in retreat.

According to data from Indeed, the number of job postings related to diversity, equity, and inclusion (DEI) decreased by 44% from the same time the previous year by mid-2023. In November 2023, the last month for which data was available, the decline was 23% year over year.

In contrast to the period from 2020 to 2021, when those postings increased by nearly 30%, the growth rate has slowed down significantly.

Both Google and have reduced their staff and scaled back programs under the umbrella of diversity, equity, and inclusion (DEI) investment.

Despite the growth of tech giants, smaller, third-party organizations have been affected by the year's cuts, as they relied on big tech clients for work.

During economic downturns in tech, DEI budgets are often among the first to be cut, but this year's contrast has been particularly stark, according to Melinda Briana Epler, founder and CEO of Empovia, who advises companies and leaders to adopt a research-based culture of equality.

Devika Brij, CEO of Brij the Gap Consulting, stated that when George Floyd became a topic of discussion, companies and executives intensified their commitments. Now, a few years later, individuals are searching for ways to reduce their DEI teams. Brij revealed that some of her clients had reduced their DEI budgets by up to 90% by midyear.

Experts warned CNBC that there are more consequences to broken promises than just the initial disappointment.

As technology companies continue to advance in the field of artificial intelligence, it is crucial to ensure that diverse individuals are involved in its development to prevent further power imbalances among corporate workers and consumers.

Our dedication to diversity, equity, and inclusion is at the core of our company identity," a Meta representative stated in a CNBC statement. "We continue to intentionally design equitable and fair practices to drive progress across our people, product, policy, and partnerships pillars.

Google has announced workforce reductions and is focusing more on its business, but remains committed to underrepresented communities and DEI work. The company has invested in new programs and partnerships this year.

The Google spokesperson did not challenge any details in this report, but highlighted new investments in partnerships this year, including pledging over $5 million to historically Black colleges and universities to strengthen the flow of underrepresented talent into the tech industry, and introducing the Google for Startups Women Founders Fund to support women entrepreneurs.

Cuts to internal teams and programs

In 2021, Google announced the sunsetting of its Engineering Residency program and the introduction of a new program called Early Career Immersion (ECI) to address pay equity concerns. Google stated that the decision to sunset Engineering Residency was not related to the new program.

CNBC reports that Google has decided not to hire a 2023 cohort of ECI software engineers due to an uncertain hiring outlook, and also laid off some staff associated with the program.

CNBC discovered that individuals involved in a separate Google initiative called Apprenticeships raised concerns about insufficient opportunities and wage disparities in the past year.

Google's Apprenticeships website declares that apprentices contribute to the company's objective of creating exceptional products for all users, and their unique experiences guarantee that the products are as diverse as the user base.

Despite doing similar work and contributing significantly to Google's codebase, apprenticeship program participants complained that they were being paid less than other engineers during the 20-month program. They stated that they were performing "Level 3" work with L3 expectations, yet were earning only half of the full-time L3 software engineers' base salary, according to internal correspondence seen by CNBC.

The apprentices directly addressed Aparna Pappu, vice president of Google Workspace, and highlighted her previously stated objective of enhancing the representation of underrepresented talent within Google.

The company stated that apprentices receive a salary for their learning and training, and that the compensation is reviewed annually to match industry standards.

The Apprenticeships program, which aimed to provide real-work job training for underrepresented backgrounds, followed other unsuccessful attempts to increase diversity. For example, in 2021, Google shut down a long-standing program aimed at entry-level engineers from underrepresented backgrounds after participants claimed it enforced "systemic pay inequities." Additionally, CNBC discovered that the company's separate program aimed at students from historically Black colleges suffered extreme disorganization, racism, and broken promises to students.

According to sources and documentation, Google and Meta reduced their staff responsible for recruiting underrepresented individuals.

Over 60 members of Meta's Sourcer Development Program, which aimed to help diverse individuals obtain careers in corporate technology recruiting, were among the over 11,000 workers laid off by the company. These workers claimed to have received inferior severance packages compared to other laid-off workers during the same time period.

Meta cut several DEI managers, some of whom it hired in 2020, while Google also cut DEI leaders who worked with Chief Diversity Officer Melonie Parker.

Google and Meta's layoffs affected employees who held leadership positions in their respective Black ERGs.

Epler stated that with layoffs or impending layoffs, there is a decrease in physiological safety, and holding ERGs responsible for this is not fair and can result in increased burnout.

Meta and Google have also canceled planned learning and development training for underrepresented talent, in addition to cutting staff who worked on DEI programs and ERGs, according to multiple sources who requested anonymity out of fear of retaliation. Meta stated that their learning and development programs were streamlined to increase their effectiveness.

"Consistently, many individuals have failed due to the absence of internal teams to maintain the mission," stated Simone White, senior vice president at Blavity, a media organization that concentrates on Black community content and hosts AfroTech, a popular tech conference for Black tech talent and companies seeking to hire them.

Cuts impacting external organizations

The cuts to internal DEI programs were difficult, but arguably even harder for external organizations that relied on tech companies for corporate sponsorship and support in 2023.

In early 2023, big tech companies such as Google and Meta reduced their collaboration with third-party companies that relied on their projects, according to multiple sources who spoke with CNBC.

Brij, CEO of Brij the Gap Consulting, discussed the impact of the deep cuts on her company, which specializes in helping businesses develop a strong workforce for underrepresented groups through workshops and programs.

With limited or cut budgets, we are currently backpedaling on much of the work we have done.

Brij said some companies have even asked her to provide work for free.

"Before the cuts, many companies made progress, but now some are undoing that progress," Epler stated.

Hella Social Impact founder Stefania Pomponi stated that executives have attributed cost-cutting as the reason for canceling contracts with the company, which provides leadership training and programs to create more inclusive workplaces.

Pomponi emphasized that businesses must consider the impact of cuts on their employees, stating, "Your bottom line is also your people, and studies show that diverse teams lead to higher performance outcomes."

Brenda Wilkerson, CEO of AnitaB.org, stated that some of the funds allocated around the time of George Floyd's murder have not been fully extended, indicating that organizations like theirs are crucial now more than ever.

Some large tech companies, including Meta, have withdrawn from sponsorship or attendance for employees to attend Grace Hopper 2023, according to sources who requested anonymity. Some companies, including Meta, have sent leaders to attend virtually to avoid travel expenses, according to two anonymous sources.

Microsoft and Meta confirmed to CNBC that Grace Hopper's virtual option enabled more employee participation, despite Microsoft physically sending some staff.

Several sources who asked to remain anonymous reported that other companies, including Google, which still had a presence at the conference, retracted travel for some employees who had previously been approved to attend. Additionally, Google is among companies to reduce their spending with Blavity, the organization that puts on AfroTech, according to sources who asked not to be named due to being unauthorized to speak.

We have received feedback from some of our existing corporate partners that their DEI team no longer exists, preventing them from participating in our event," said Simone White of Blavity. "We have noticed that our contacts at companies change frequently, and some individuals who have been with us for years are no longer involved in organizing our work.

Although AnitaB.org's Wilkerson is optimistic that the tide could turn around in 2024, she stated that it would not be truthful to say our progress is not in peril. We have made a lot of progress in our society, but some of that was erased in the last year, and there is a backlash against racial reckoning.

Wilkerson pointed out that the backlash against affirmative action and DEI programs in conservative circles is not limited to the Supreme Court's June decision, but also includes Florida legislation that bans books and downplays Black history, as well as laws impacting the LGBTQIA+ community.

The organization will not hold Grace Hopper in Florida in 2023, according to Wilkerson. Instead, it will take place in Philadelphia.

A Meta spokesperson stated that the company boosted its collaboration with certain third-party groups, including The Executive Leadership Council, which aims to enhance Black representation in C-suite positions.

DEI and AI

In 2023, the rapid advancement of artificial intelligence made DEI work even more crucial, as experts advised CNBC.

As AI gains momentum, organizations must prioritize inclusivity to ensure their products accurately represent their users, according to Wilkerson.

Despite efforts by tech giants such as Google, accurately displaying and identifying images remains a challenge. A recent investigation by The New York Times revealed that Apple and Google's Android software, which powers the majority of smartphones worldwide, disabled the ability to visually search for primates in order to avoid labeling individuals as animals.

Wilkerson stated that AI is trained on historical data, which may not include all segments of the population, and having women and non-centered individuals as decision-makers is crucial to preventing similar issues from happening again.

Companies that made cuts this year may face challenges in establishing future relationships with DEI stakeholders, which could negatively affect their ability to attract and retain talent if they decide to rebuild in the future.

White stated that younger generations are increasingly concerned about who is seated at the table and will remember the actions of those who made promises.