Walmart Faces Investor Backlash Over DEI Cutbacks

A coalition of over 30 shareholders, representing a combined $266 billion in assets, has urged Walmart Inc. to clarify its decision to scale back on diversity, equity, and inclusion (DEI) efforts, according to Bloomberg. 

In a letter addressed to CEO Doug McMillon, the investors expressed concern over the retailer’s recent moves, calling the shift “disheartening” and accusing the company of yielding to “bullying and pressure from anti-DEI groups.”

Among the signatories of the letter were major investors like Amalgamated Bank and the Dominican Sisters of Grand Rapids, alongside organizations such as Mercy Investment Services. The group emphasized that DEI initiatives are critical not just for social justice, but for business success, arguing that systemic inequities hinder the economy and ultimately affect investors’ returns.

The shareholders are seeking a meeting with Walmart’s senior leadership and board members to discuss the changes in company policy, which they argue lack a clear business or financial justification. They pointed out that they have been engaging with Walmart’s leadership for over three decades, advocating for policies that address discrimination and inequities.

The pushback comes as Walmart has taken steps to scale back its DEI programs. In November, the company announced it would no longer consider race or gender when awarding supplier contracts, and would halt collecting demographic data in relation to financing eligibility. These decisions followed pressure from anti-DEI activists, including Robby Starbuck, who had threatened Walmart with a customer boycott over its diversity initiatives.

Walmart has not provided a detailed explanation for the policy changes. However, the company has said it remains “focused on creating a Walmart for everyone” and would continue to reinforce this commitment through its actions. Walmart also acknowledged that some of these changes had been under review even before the controversy, as part of a broader reevaluation of DEI initiatives spurred by the Supreme Court’s 2023 decision banning affirmative action in college admissions.

The decision has added to the larger national debate around DEI programs. Many corporations, including others targeted by Starbuck such as Deere & Co. and Toyota Motor Corp., are reexamining their diversity efforts. Meanwhile, religious shareholder groups on both sides of the political spectrum are becoming more vocal in their advocacy, with conservative investors backing a growing push to reduce DEI influence in corporate practices.

Despite the mounting pressure from both sides, Walmart appears committed to reassessing its policies, with the company signaling it will take a more measured approach to DEI going forward.