PepsiCo has announced a significant adjustment to its Diversity, Equity, and Inclusion (DEI) policies, which includes the removal of the Chief DEI Officer position and the discontinuation of representation goals in hiring. PepsiCo Chairman and CEO Ramon Laguarta communicated this shift in a letter to employees, stating that with the conclusion of the company’s five-year DEI strategy in 2025, a new “Inclusion for Growth” strategy will be introduced to integrate inclusion more deeply as a driver of business growth, as reported by Robby Starbuck, a conservative activist.
The letter outlines that the role of Chief DEI Officer will transition to a broader capacity, emphasizing that inclusion is a responsibility shared by all leaders at PepsiCo. The company plans to eliminate aspirational goals related to representation in hiring and will centralize Employee Resource Groups (ERGs), which currently include affinity groups for Black and Hispanic employees.
This move by PepsiCo aligns with a broader trend among companies such as Target, Walmart, John Deere, and Harley-Davidson, as they reconsider DEI initiatives amidst national backlash. This reevaluation follows executive actions by former President Donald Trump, which included combating DEI policies within the federal government and targeting companies allegedly employing discriminatory DEI practices.
In continuing the discussion on inclusion, Laguarta stated that PepsiCo values hard work and performance in driving success and remains committed to providing opportunities for all associates to grow and advance based on talent and performance. The company aims to enhance inclusion by integrating it into team-building, growth strategies, and community engagement to maintain competitiveness and innovation.
Earlier this year, PepsiCo announced that it would pursue viewpoint neutrality in its media ad spending, after being involved with the Global Alliance for Responsible Media (GARM), which faced criticism from Abigail Slater, a nominee for Trump’s DOJ antitrust division chief, for alleged collusion against right-wing media platforms.
Despite these changes, some, like Paul Chesser from the National Legal and Policy Center, are skeptical, suggesting that PepsiCo’s actions are only for appearance. Chesser, whose organization proposed ending DEI metrics in executive bonuses, contends that DEI remains a latent focus at PepsiCo, as indicated by its continued presence on the company’s website.
