PepsiCo announced on Friday that it will be discontinuing several of its diversity, equity, and inclusion (DEI) initiatives, while its competitor Coca-Cola emphasized its continued commitment to similar efforts.
In a message sent to employees, PepsiCo’s CEO Ramon Laguarta indicated that the company would no longer set specific targets for enhancing minority representation within its management or supplier networks. Additionally, he mentioned that PepsiCo would realign its sponsorships with events and organizations that promote business expansion.
Laguarta reassured employees that inclusion is still a priority for PepsiCo, which is home to popular brands such as Gatorade, Lay’s, Doritos, Mountain Dew, and Pepsi itself. The company’s chief diversity officer will be transitioning into a broader role that aims to enhance employee engagement, develop leadership skills, and support a culture of inclusivity, according to his statement.
Following President Donald Trump’s return to the White House last month, numerous U.S. government agencies, businesses, and educational institutions have been prompted to reassess their strategies and programs aimed at combating discrimination against minority groups, women, and LGBTQ+ individuals.
Trump has abolished DEI initiatives within federal agencies and cautioned educational institutions that failure to end such programs could jeopardize their federal funding.
While PepsiCo is scaling back its DEI efforts, Coca-Cola has reiterated its commitment to these initiatives. In its annual report, the Atlanta-based company warned that insufficient diversity could hinder its ability to attract employees reflective of its diverse customer base.
“A failure to uphold a corporate culture that encourages innovation, collaboration, and inclusion could disrupt our operations and negatively impact our business and future success,” Coca-Cola stated.
Coca-Cola aims to achieve a representation of women in 50% of senior leadership roles by the year 2030. The company has also expressed its intention to have its racial and ethnic diversity mirror national census data across all levels in the United States.
Conservative activist Robby Starbuck, known for criticizing corporate DEI programs, welcomed PepsiCo’s decision. In a post on X, he suggested that Coca-Cola should feel anxious about continuing its “woke policies.”
PepsiCo’s actions align with a broader trend among companies that have scaled back DEI programs following Trump’s electoral victory and a significant 2023 U.S. Supreme Court ruling that eliminated affirmative action in college admissions.
