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Google and Meta used to champion DEI efforts. Why Big Tech is pulling back

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Google and Meta used to champion DEI efforts. Why Big Tech is pulling back

More than a decade ago, outcries about the lack of diversity in the tech industry reverberated across major Silicon Valley companies from Facebook to Google.

Women and minorities spoke out about feeling out of place in male-dominated professions, civil rights activists urged businesses to do more and tech workers like Tracy Chou, who was a software engineer at Pinterest at the time, pushed companies to release diversity data.

“There was already some movement in that direction, at least a feeling like we should do this,” said Chou, who wrote a viral Medium post in 2013 about the lack of female engineers. “What I happened to crystallize was a line of thinking that really resonated with the more data-driven side of the industry.”

For diversity advocates like Chou, the tide has now turned. Facing more political pressure and legal risks during President Trump’s second administration, tech companies that previously championed diversity including Google, Meta (Facebook’s parent company) and Amazon are scaling back, scrapping or rethinking their diversity, equity and inclusion (DEI) efforts.

It’s part of a broader retrenchment across the business community. About 20% of companies in the Standard & Poor’s 100 have retreated from DEI commitments since Trump was elected, according to a Bloomberg News analysis. Those include Target Corp., McDonald’s Corp. and Disney.

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Trump and Elon Musk, who spent more than $200 million to help elect the president to a second term, have been vocal critics of DEI programs. In a fact sheet about Trump’s executive order, the White House said many corporations use DEI as “an excuse for biased and unlawful employment practices,” sending a message to businesses that they could get sued. Companies such as Google and Amazon also contract with federal agencies.

“They’re reading the room, especially with Trump and Elon running the country,” said Chou, now the chief executive of Block Party, a tool that helps users combat online harassment.

Corporate pledges to fight racism including from Musk’s company Tesla heightened after the 2020 police murder of George Floyd, sparking massive protests against police brutality.

But legal threats emerged in 2023 after the U.S. Supreme Court struck down race-based affirmative action in college admissions. As tech companies cut thousands of jobs, the massive cuts also hit DEI teams.

Spending on DEI roles at S&P 500 companies started to fall in 2022 as mass layoffs swept the tech industry, data from Revelio Labs show. In November 2024, these businesses spent an estimated $1.3 billion on DEI roles, down 10% compared to the same month in 2022.

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From December 2022 to December 2024, tech companies including Google’s parent company Alphabet, Netflix and Amazon spent less on roles that promoted diversity and inclusion.

During this period, Tesla’s DEI spending was down by 84% and Meta’s DEI spending declined by 53%, according to Revelio Labs, which analyzes data from various sources including online profiles on sites like LinkedIn or Jobcase.

Tech companies have pointed to legal risks in internal memos about why they’re rethinking how they approach their DEI programs.

“They wanted to keep President Trump on their good side, because they don’t want to deal with any legal ramifications from the federal government,” said Jared Slater, partner at Ervin Cohen & Jessup.

The White House didn’t respond to a request for comment.

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Meta’s Chief Executive Mark Zuckerberg, a former Trump critic who also said previously that improving diversity in tech is important, has in recent months aligned himself with the president and talked about the benefits of “masculine energy.” The company told its employees in an internal memo that the legal and policy landscape surrounding DEI changed and pointed to Supreme Court decisions.

“The term ‘DEI’ has also become charged, in part because it is understood by some as a practice that suggests preferential treatment of some groups over others,” said Janelle Gale, Meta’s head of human resources, in an internal memo.

The company said it wanted to serve everyone and would no longer use its “diversity slate approach” in which hiring managers consider candidates from underrepresented backgrounds when interviewing for an open role.

Meta also ended representation goals for women and minorities, a program to source supplies from diverse-owned businesses and scrapped its DEI teams. Maxine Williams, Meta’s chief diversity officer, became the vice president of accessibility and engagement.

Websites for Meta’s unconscious bias training and TechPrep, a resource hub for underrepresented people and their parents to learn about computer science, are no longer online.

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Meta declined to comment but confirmed the memo, first published by Axios.

Google said this month it was reevaluating its DEI programs “following recent court decisions and executive orders on this topic.” The company said it would no longer set hiring targets tied to improving diversity after previously setting a goal of increasing by 30% the proportion of “leadership representation of underrepresented groups” by 2025.

And Amazon told its employees that it’s “winding down” certain programs after evaluating their “effectiveness, impact and ROI [return on investment]” but didn’t specify which ones.

In a December memo to employees reviewed by The Times, the company’s Vice President of inclusive experiences and technology Candi Castleberry told employees that the company is focused on “programs with proven outcomes” while also aiming to “foster a more truly inclusive culture.” Amazon shared the memo.

Amazon Studios — which announced a series of ambitious inclusion goals in June 2021 — also has been making changes. Last September, the Culver City-based studio removed a public-facing inclusion playbook from its website along with a goal that films or series with three or more people in above-line roles such as directors and producers included at least 30% women and 30% members of an underrepresented group.

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“We’ve said from the beginning that our efforts to ensure diverse and inclusive storytelling would be fluid and change over time,” Amazon spokesperson Brad Glasser said in a statement. He added that the company strives to “tell the very best stories, while empowering diverse voices in our storytelling wherever possible.”

Meanwhile, some tech companies such as Apple are fighting back against anti-DEI proposals from conservative shareholders. The National Center for Public Policy Research, a conservative think tank, is asking that Apple consider ending its DEI programs, policies, departments and goals.

“The risks to the company’s bottom line stem from potentially getting sued by individuals for discrimination, potentially getting legal action from the government for violating civil rights law, and then the market backlash,” said Stefan Padfield, executive director of the center’s Free Enterprise Project.

Apple recommended that shareholders reject the proposal at the company’s annual shareholder meeting on Feb. 25.

Apple didn’t respond to a request for comment, but the company said in a document to shareholders that the anti-DEI proposal was “unnecessary” partly because its board and management oversee legal and regulatory risks.

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Netflix has remained committed to DEI after Trump’s executive order, stating in its annual report that a “major focus” is “fostering a work environment that is culturally diverse, inclusive and equitable” because it wants more people and cultures to see themselves reflected on screen.

The Los Gatos-based streaming giant said in its annual report released in January that it educates its recruiters on how to hire more inclusively.

A Netflix spokesperson didn’t respond to a request for comment.

“What we need to do in this moment in time is to stand up, to speak up, to be strategic and to keep moving forward,” said Vernā Myers, former Netflix vice president of inclusion strategy and founder of the Vernā Myers Co., a consultancy on diversity, equity and inclusion. “We can’t allow this kind of bullying to make us so fearful that we are paralyzed and that we draw back from our core values.”

The backlash against DEI is not only affecting workplace culture, but nonprofits focused on recruiting more women and minorities into the tech industry.

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Last year, Women Who Code, a nonprofit that got its start in California, closed because of a lack of funding. AnitaB.org, which brings together women in tech at its annual Grace Hopper Celebration, cut its workforce in 2024 and pointed to a downturn in corporate DEI investments.

Some diversity advocates like Freada Kapor Klein, co-chair of the Kapor Center, question whether some tech companies ever took DEI that seriously.

Tech giants seemed more open to diversity efforts in times of talent shortages because it helps open up a pool of potential hires, she said. Now they’re rolling back DEI efforts amid layoffs and a political climate in which Republicans hold more power.

“It is now fashionable to be anti-DEI. It’s now fashionable to talk about masculine energy. It’s now fashionable … to align oneself with MAGA interests,” she said. “So you have to kind of ask, what is it that people actually, really and truly believe?”

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Video: The Hidden Number Driving U.S. Job Growth

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Video: The Hidden Number Driving U.S. Job Growth

new video loaded: The Hidden Number Driving U.S. Job Growth

After a year of just 181,000 new jobs, January’s 131,000 increase in the U.S. workforce was surprisingly positive. Ben Casselman, The New York Times’ chief economic correspondent, explains the numbers.

By Ben Casselman, Christina Thornell, Christina Shaman, June Kim and Nikolay Nikolov

February 13, 2026

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Why Mattel now has a problem with Barbie

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Why Mattel now has a problem with Barbie

Barbie manufacturer Mattel took a hit this week after its superstar doll failed to deliver.

The El Segundo company behind many of the world’s most iconic toys was walloped in the stock market — its shares plunged 25% Wednesday — after it announced that holiday-season sales were weak and that it expects another slow year.

It was overoptimistic about how many Barbies and other products consumers would want and had to slash prices to move them, even as it grappled with higher costs from tariffs, analysts said.

“2025 was marked by uncertainty,” Ynon Kreiz, chief executive of the company, said after earnings were unveiled Tuesday.

While Mattel’s Hot Wheels were hot, and its party card game Uno attracted new fans, Barbie has been struggling. Mattel’s Fisher-Price line, which makes educational toys for infants, toddlers and preschoolers, also lagged.

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The doll and its many variants have been losing momentum since her latest 15 minutes in the spotlight following the 2023 hit movie “Barbie.” This year, Mattel says it will increase its focus on making more digital games and toys tied to movie franchises.

Last year, its net sales were about $5.3 billion, down 1% from the year before, according to the company’s unaudited financial statements. Its projection for this year also disappointed investors. The company lost close to $1 billion in market value as investors dumped its shares.

The movie that was the fun half of the “Barbenheimer” summer took in close to $1.5 billion at the box office and rejuvenated buzz around the 60-something Barbie, sparking more than $150 million in sales from dolls and other related products. At the time, it seemed to validate the toymaker’s strategy of turning its legacy brands into modern media properties, with live-action films. It has not been able to repeat that success yet, and that failure has weighed on its earnings.

Despite efforts to create buzz around the Barbie brand — including a diabetes Barbie and an autism Barbie — gross billings for Barbie products slid 11% last year, following a similar decline in 2024.

Mattel on Tuesday said it plans to double down on its strategy to become, as its CEO called it, an “IP-driven play and family entertainment business.” That means it wants to make more money from video games and movies.

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Though toys are foundational to Mattel, the company said it is trying to broaden its reach by focusing more on content licensing and digital games, which tend to be more profitable.

Mattel has long worked with Disney to make princess dolls and has partnered with Netflix to make toys inspired by characters from the 2025 movie “KPop Demon Hunters.” The K-pop-inspired products will ship in the spring, and Mattel expects them to boost doll sales.

This week, it announced a deal to develop and market toys tied to the Teenage Mutant Ninja Turtles franchise, which is scheduled to have a new movie next year. It can also expect a jump in interest around its toys connected to the Masters of the Universe franchise and Matchbox brand, both slated to have movies this year.

“Success in our toy business will drive success in entertainment, and success in entertainment will drive greater success in toys,” Kreiz said. “We are looking to fully capitalize on this virtuous cycle.”

The company literally doubled down on one of its biggest bets on digital games.

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Mattel announced plans to spend around $160 million to acquire the other half of mobile games studio Mattel 163, a joint venture between Mattel and the Chinese internet and video game company NetEase.

The studio has released four games based on Mattel’s intellectual property since it was established in 2018.

Mattel plans to make more “games based on Mattel IP that drive sustained engagement for fans,” Kreiz said in a statement.

The acquisition will temporarily impact Mattel’s bottom line but is intended to “accelerate growth in top and bottom lines in 2027 and beyond,” Kreiz said on the call.

For some, Mattel’s big plans to diversify away from toys haven’t been successful enough to spark confidence that the company can pull it off this year.

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Morningstar analyst Jaime Katz said Mattel’s digital strategy has not panned out in the decade since company leadership started touting it.

“Every year we’re expecting the next year to be a growth year,” Katz said. “It looks now like we’re going to have another year where it’s stuck.”

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Disney to pay $2.75 million to settle alleged violations of the California Consumer Privacy Act

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Disney to pay .75 million to settle alleged violations of the California Consumer Privacy Act

Walt Disney Co. will pay $2.75 million to settle allegations that it violated the California Consumer Privacy Act by not fully complying with consumers’ requests to opt out of data sharing on its streaming services, the state attorney general’s office said Wednesday.

The Burbank media and entertainment company allegedly restricted the extent of opt-out requests, including complying with users’ petitions only on the device or streaming services they processed it from, or stopping the sharing of consumers’ personal data through Disney’s advertising platform but not those of specific ad-tech companies whose code was embedded on Disney websites and apps, the attorney general’s office said.

In addition to the fine, the settlement, which is subject to court approval, will require Disney to enact a “consumer-friendly, easy to execute” process that allows users to opt-out of the sale or sharing of their data with as few steps as possible, according to court documents.

“Consumers shouldn’t have to go to infinity and beyond to assert their privacy rights,” Atty. Gen. Rob Bonta said in a statement. “In California, asking a business to stop selling your data should not be complicated or cumbersome.”

A Disney spokesperson said in a statement that the company “continues to invest significant resources to set the standard for responsible and transparent data practices across our streaming services.”

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“As technology and media continue to evolve, protecting the privacy and preserving the experience of Californians and fans everywhere remains a longstanding priority for Disney,” the spokesperson said.

The settlement with Disney stemmed from a 2024 investigation by the attorney general’s office into streaming devices and apps for alleged violations of the California Consumer Privacy Act, which governs the collection of consumers’ personal data by businesses.

Under the law, businesses that sell or share personal data for targeted advertising must give users the right to opt-out.

Disney’s $2.75-million payment is the largest such settlement under the state privacy act, Bonta’s office said.

The attorney general has also reached settlements with companies such as beauty retailer Sephora, food delivery app DoorDash and SlingTV for alleged violations of the privacy act.

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