Target’s decision to pull back on its diversity, equity and inclusion (DEI) commitments comes with a price tag, not just to its public image.

In the first quarter of 2025, the retailer reported a 3.8% drop in comparable sales and a 2.8% year-over-year revenue decline to $23.8 billion. Once hailed as a corporate leader in inclusive practices, Target has recently shuttered key DEI initiatives like its REACH program and has rebranded Supplier Diversity, moves that many viewed as a retreat under political pressure.

The fallout was immediate:

Consumers pushed back, boycotts erupted and trust eroded.

Target, which had once pledged over $2 billion to Black-owned businesses, is now forecasting a full-year sales decline after initially projecting growth.

The company’s CEO, Brian Cornell, reportedly took a nearly 50% pay cut as investor confidence slipped and public scrutiny mounted.

“While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth, led by a 36% increase in same-day delivery through Target Circle 360, and our strongest designer collaboration in over a decade, Kate Spade for Target,” Cornell said during an investor call.

But Target is not alone. Across industries, corporate giants that once embraced DEI are now scaling back — and seeing real consequences.

In 2025, Walmart, Amazon, Ford and McDonald’s have all either quietly dismantled or publicly downshifted their DEI programs.

Despite reporting $165.6 billion in Q1 revenue — a 2.5% increase year-over-year — Walmart is facing internal restructuring, including 1,500 corporate layoffs and the quiet disbanding of several equity-focused teams. U.S. comparable sales rose 4.5%, and global e-commerce jumped 22%, but the gains were driven by price rollbacks, aggressive discounting, and tariff management strategies, not by growth in general merchandise. Despite rolling back related programs earlier in the year, the company made no mention of DEI in its earnings discussion.

Amazon, too, posted substantial numbers: $155.7 billion in Q1 revenue, up 9% from the prior year, with operating income reaching $18.4 billion and net income at $17.1 billion. But Wall Street wasn’t impressed — the company’s stock dipped 2.2% in after-hours trading. The reason? Investor anxiety over tariffs, rising labor costs and customer sentiment.

Amazon has reportedly laid off multiple DEI staffers and stripped its reports of diversity language. While not addressed in the earnings call, those internal moves have sparked criticism among workers and watchdogs alike.

At Ford, the connection between policy shift and financial fallout is even more direct.

The automaker reported $40.7 billion in Q1 revenue, a 5% drop from the same quarter last year. Net income plummeted 64% to just $471 million and adjusted EBIT fell to $1 billion — down from $2.8 billion a year prior. The company projected a $1.5 billion annual hit from newly imposed tariffs, suspended full-year guidance, and posted a negative free cash flow of $1.5 billion.

Yet while those figures are grim, Ford’s shift away from its prior DEI commitments has been equally troubling to observers. The company removed all specific DEI references from its reports, ended external benchmarking participation, and reshaped its employee resource groups to avoid “political” issues. Critics say the move betrays its post-2020 pledges and undercuts employee morale, innovation and consumer loyalty.

McDonald’s, once celebrated for its vocal DEI push, also sees slippage. Its Q1 2025 revenue fell 3% to $5.96 billion. U.S. comparable sales dropped 3.6% due to declining guest counts. The fastfood giant’s diluted earnings per share dropped 2% to $2.60, and the company acknowledged $66 million in restructuring charges as it reshapes its internal organization. Those internal shifts include phasing out internal DEI councils and scaling back on equity pledges made in the wake of George Floyd’s murder.

These corporate reports tell a deeper story: DEI is not a passing trend or an optional branding tool, but a reflection of values — and values matter to modern consumers.

As companies have abandoned equity, they have lost trust. The numbers show that when trust goes, revenue often follows.

“People see through the retreat,” said Dr. Benjamin F. Chavis Jr., president and CEO of the National Newspaper Publishers Association. “And they’re responding with their wallets.”

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