Walmart Shifts Away from DEI Policies After Conservative Backlash

Walmart, the world’s largest retailer, has announced a significant rollback of its diversity, equity, and inclusion (DEI) policies, following pressure from conservative activist Robby Starbuck. The changes, which include halting race and gender-based considerations in supplier contracts, come after Starbuck mobilized his 700,000 followers to boycott the company ahead of Black Friday if the retailer did not alter its approach.

The company’s shift includes winding down the Center for Racial Equity, a non-profit initiative that received $100 million in funding from Walmart in 2020. Additionally, Walmart will scale back some racial equity staff training, reconsider its support for Pride events, and withdraw from rankings by the Human Rights Campaign, an LGBT advocacy group. The retailer also plans to monitor and remove online products deemed inappropriate for children, particularly those related to sexual or transgender content.

Starbuck, a former music video director turned conservative activist, celebrated the changes in a post on X (formerly Twitter), stating, “I’m happy to have secured these changes before Christmas when shoppers have very few large retail brands they can spend money with who aren’t pushing woke policies.” Elon Musk, CEO of Tesla, also weighed in, sharing the news on social media and commenting, “The tide has turned,” signaling his support for the decision.

Walmart, which employs 2.1 million people and has a market valuation of approximately $740 billion, emphasized that it had been reviewing some of its DEI policies before the backlash. The retailer stated, “We are willing to change alongside our associates and customers who represent all of America.” Walmart’s president and CEO, John Furner, explained in an interview with CBS News that the company was committed to ensuring that all customers and associates feel welcome, regardless of their background.

The decision marks a dramatic shift for a company that has made significant strides in sourcing goods from diverse suppliers. In the past financial year, Walmart reported sourcing over $13 billion in goods and services from businesses owned by veterans, people with disabilities, and members of the LGBT community, among others. Walmart’s latest diversity report also revealed that people of color make up about 51% of its U.S. workforce, with 59% of new hires from diverse backgrounds.

However, the move has sparked a mixed response. Conservative activists like Starbuck have praised Walmart’s decision as a victory for corporate neutrality, while others, particularly on platforms like Bluesky, have criticized the retailer for undermining diversity and inclusion efforts. Users on the platform called Walmart “disgusting” and “cowards” following the announcement.

Walmart now faces the challenge of balancing the demands of diverse stakeholders, as it risks alienating customers who support DEI initiatives while trying to appease those who oppose them.