Microsoft lays off DEI team, calling it 'no longer business critical or smart'

Microsoft was revealed to have quietly laid off a diversity, equity, and inclusion team after insiders leaked an email detailing the change at the company for the new fiscal year.

While it is unclear how many employees Microsoft decided to let go, the move was reportedly made due to "changing business needs," starting on July 1, 2024.

"True systems-change work associated with DEI programs everywhere are no longer business critical or smart as they were in 2020," the email said, according to Business Insider.

'D&I commitments remain unchanged.'

Microsoft spokesperson Jeff Jones told the outlet in response that the company still has a deep commitment to DEI but failed to specifically confirm or deny the report.

"Our focus on diversity and inclusion is unwavering and we are holding firm on our expectations, prioritizing accountability, and continuing to focus on this work."

He added that Microsoft's "D&I commitments remain unchanged."

The cuts came at the typical time for Microsoft, which is nearing the end of its fiscal year. In 2023, the company's layoffs totaled around 10,000 as leaders cited economic uncertainty and inflation as the primary reason for letting employees go.

It was only a few months prior to the DEI layoffs when Microsoft was accused of celebrating race- and sex-based discrimination in its annual "Diversity and Inclusion Report."

In February 2024, Microsoft proudly declared in the document that its black, Asian, and Hispanic employees earned more than their white counterparts. It also noted that female employees earned more than male coworkers operating at the same level and in the same roles.

As the Daily Wire reported, Microsoft began making significant investments into its DEI programs after the death of George Floyd, pledging to spend $150 million in DEI programs and double "the number of Black and African American people managers, senior individual contributors, and senior leaders in the United States by 2025."

However, trends are moving in the other direction with companies like Zoom liquifying DEI departments. A competitor to Microsoft's Skype application, Zoom said in February 2024 that the company wanted to focus on working with external consultants instead of an internal team and fired a DEI team.

The consultants will work to engage "all of our employees" with a focus on "inclusion," CEO Aparna Bawa told Bloomberg at the time.

Zoom also launched its DEI programs after the death of George Floyd.

The name of the person who leaked the internal Microsoft email was not released.

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