Happy Friday.
This week, workforce data company Revelio Labs released a new report confirming what many suspected: Diversity, equity, and inclusion roles have been hit hard by company layoffs. “And it’s just the tip of the iceberg because it is currently actively happening," says Revelio Labs’ senior economist Reyhan Ayas. "This loss of talent will definitely have stronger effects down the line.”
Revelio's analysis found a 33% churn rate for DEI-focused roles at more than 600 companies engaged in layoffs, compared to 21% for non-DEI roles. “It's definitely a notable number,” she says. It’s been a slow build: Attrition rates for DEI roles in companies eliminating jobs have slowly outpaced those of non-DEI roles since 2020. But the number has climbed precipitously in the last six months, and with it, the report shows, an overall decline in “diverse” hiring as defined by individual companies.
Companies with the largest outflow of DEI talent are Target, Capital One, Amazon, Applebee’s, Wells Fargo, Twitter, Nike, and Intel.
Considering the typically small size of inclusion teams—the median size for a DEI team among the listed companies is 3, says Ayas—the loss could mean entire departments. “This will definitely impact future hires and future employee sentiments at these companies as well,” she says.
Many companies invested in DEI talent as part of the post-George Floyd pledges to do better, and losing this expertise signals that these were not serious commitments from the start.
“With the ‘last in, first out’ logic of layoffs, they’re really correcting for all the over-hiring that happened in the last two years,” Ayas says. “The diversity problem in big tech companies or high-paying industries has been around for a while, and even when companies want to make an effort to hire more diverse candidates, we know that it is not as straightforward or as easy as they would like it to be.”
And now it’s going to be harder.
Ayas says to expect a dip in employee goodwill as the tangible benefits of an inclusion-focused workplace begin to fade. And with fewer of those voices at the table, there will be fewer experts to help companies navigate sudden issues.
One on the horizon is the decision from the Supreme Court on affirmative action in education, expected this spring.
Ayas imagines the ripple effect in corporate life will also be notable. “With affirmative action [potentially] no longer in place, diversity may lose steam as a focus in both industry and education." She says it will have implications in almost every market and any place humans work, live, and study. “It will make it even harder for pretty much all companies to commit to whatever goals they set.”
Now, I want to hear from you. How is your company thinking about the upcoming SCOTUS decision on affirmative action? Are you thinking about how a possible “contagion effect” would challenge how your company’s inclusion work plays out? Let me know; subject line: SCOTUS.
More inspiring news below.
Ellen McGirt
@ellmcgirt
Ellen.McGirt@fortune.com
This edition of raceAhead was edited by Ruth Umoh.
