Diversity and inclusion left the Teams chat? Former Diversity Chief slams Microsoft for dismissing its DEI team due to "changing business needs"

Microsoft logo
Source: Daniel Rubino/Android Central (Image credit: Future)

What you need to know

  • Microsoft has reportedly dismissed its diversity, equity, and inclusion (DEI) team due to "changing business needs".
  • Former DEI lead accuses Microsoft's top management of "investigated and evidenced discrimination, harassment, and toxicity."
  • The tech giant insists it's still committed to the cause and focused on diversity and inclusion. 

Microsoft recently laid off its diversity, equity, and inclusion (DEI) team. According to an internal email sent by the team's leader first spotted by Business Insider, the former team lead indicated the department was disbanded due to "changing business needs" (via IGN).

In the email, the former team lead further accused Microsoft's top management of "investigated and evidenced discrimination, harassment, and toxicity." The email also details the DEI's efforts at Microsoft which help move "impossible mountains" and foster "brilliant, ethical, and world-class strategists at the company, helping to make the world a better place."

Following George Floyd's gruesome murder at the height of the COVID-19 pandemic in 2020, Microsoft was among the key players in tech that were on the frontline to commit to DEI programs. Floyd's murder sparked protests across the US, with most of the participants echoing similar sentiments in unison — Black Lives Matter

As part of its commitment to diversity and inclusion, Microsoft highlighted its plans to invest approximately $150 million in the cause and even double the number of Black and African American leaders in the US by 2025. Microsoft was among the top-ranked companies in 2021's Fortune 500 list on diversity and inclusion.

The email further details:

"Unofficially in my opinion, not specific to Microsoft alone, but [conservative policy plan] Project 2025 looms, and true systems change work associated with DEI programs everywhere are no longer business critical or smart as they were in 2020. Hence the purposeful and strategic 3-5 year shelf life of many companies' inclusion commitments post the murder of George Floyd is being reevaluated. And the way I see it, the timing was impeccable so businesses everywhere could reevaluate the path forward should their U.S. federal contracts be at risk if the work continues on its face."

Microsoft spokesman Jeff Jones says the company's commitments remain unchanged. "Our focus on diversity and inclusion is unwavering, and we are holding firm on our expectations, prioritizing accountability, and continuing to focus on this work," Jones added.

It's unclear how many Microsoft employees have been affected by the company's sudden change in business needs. This could be part of the Redmond giant's plan to cut 10,000 jobs. In May, Microsoft closed three studios under ZeniMax Media, months after 1900 people were let go across Activision Blizzard, Xbox Game Studios, and ZeniMax Media.

Kevin Okemwa
Contributor

Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You'll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.

  • fjtorres5591
    Translation: The tea leaves say DEI has run its course and they see a new flavor of the week is coming. Welcome to 2025. (FY2025)

    Anybody even remember the earlier fads like PDSA or Reengineering the corporation? As Ecclesiastes (and the Byrds) said: To everything there is a season.

    Gotta prepare for the post-election world.
    (And preserve the stock price.)
    Nadella's MS is nothing if not flexible.
    Reply
  • KJKirby
    If Microsoft are sensible they will get IAMCP to pick up the bulk of this DEI work now that there is no internal team to do it. In fact IAMCP have been working on the DEI playbook for sometime so the transition should be obvious and seamless... and Microsoft's committment to DEI is then re-confirmed. Will watch this space with interest.
    Reply
  • fjtorres5591
    KJKirby said:
    If Microsoft are sensible they will get IAMCP to pick up the bulk of this DEI work now that there is no internal team to do it. In fact IAMCP have been working on the DEI playbook for sometime so the transition should be obvious and seamless... and Microsoft's committment to DEI is then re-confirmed. Will watch this space with interest.
    Yes. Watch and see.

    But the smart bet is whatever they do will be, as before 2022, quiet and merit based rather than PR-driven chest thumping. MS has always been diverse and inclusive but not ideological about it. Not a GOOGLE.

    No need to spend millions touting how politically correct they are. As they said, it brings no ROI.
    Reply
  • Cmndr_Bytes
    fjtorres5591 said:
    Yes. Watch and see.

    But the smart bet is whatever they do will be, as before 2022, quiet and merit based rather than PR-driven chest thumping. MS has always been diverse and inclusive but not ideological about it. Not a GOOGLE.

    No need to spend millions touting how politically correct they are. As they said, it brings no ROI.
    I feel sometimes ROI can't really be accounted for (pardon the pun) by the bean counters in some areas.
    Invest in employees. Help keep them happy and healthy both mentally and physically and I say this helps productivity and creativity.
    They started DEI around 2019? 2020?

    Per Copilot
    As of July 18, 2024, the price of Microsoft’s stock is $437.1531. The stock has experienced a steady increase over the years. For instance, the average stock price in 2019 was $124.6044, which increased to $186.3600 in 2020, $268.9961 in 2021, $264.2249 in 2022, and $311.6099 in 2023.

    Good loyal employees make good products which in turn make stock prices go up which in turn keep share holders happy. Something the upper echelon sometimes seem to ignore.

    Side note. As for Project 2025. That is a very bad wish list.
    Reply
  • fjtorres5591
    Cmndr_Bytes said:
    I feel sometimes ROI can't really be accounted for (pardon the pun) by the bean counters in some areas.
    Invest in employees. Help keep them happy and healthy both mentally and physically and I say this helps productivity and creativity.
    They started DEI around 2019? 2020?

    Per Copilot
    As of July 18, 2024, the price of Microsoft’s stock is $437.1531. The stock has experienced a steady increase over the years. For instance, the average stock price in 2019 was $124.6044, which increased to $186.3600 in 2020, $268.9961 in 2021, $264.2249 in 2022, and $311.6099 in 2023.

    Good loyal employees make good products which in turn make stock prices go up which in turn keep share holders happy. Something the upper echelon sometimes seem to ignore.

    Side note. As for Project 2025. That is a very bad wish list.
    Not interested in talking politics so I'll pass on P2025 as irrelevant.

    DEI at MS is recent, which is why the "diversity chief" is squealing at being shown the door. Dead weight doesn't last long there.

    Diversity and Inclusion aren't new, though, since MS has been reaching out all over for decades. And they were rated one of the better tech paces to work long before the activists started promoting the buzzword. Without going too far, Nadella didn't make CEO because of his melanin count. Look at their executive org charts to see how diverse they've been this century.

    Likewise, their stock price raise goes all the way to the last years of the Ballmer era (starting around 2010) who for all his antics, put cash cow AZURE in place and started their diversifictation into two dozen separate billion dollar businesses.

    MS is hardly perfect but they don't need ideological political activists telling them how to run their business. They generally strike a fair balance between keeping the staff content (if not always happy) and keeping the stockholders happy. Watching Roi and keeping margins in the 45% range goes a long way towards the latter.
    Reply