Paramount Drops DEI Initiatives in Response to Trump's Federal Mandate

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Paramount Drops DEI Initiatives in Response to Trump’s Federal Mandate
The Paramount+ logo is displayed during San Diego Comic-Con International at the San Diego Convention Center in San Diego, California, on July 24, 2024. CHRIS DELMAS/AFP via Getty Images

Paramount Global has announced the end of several diversity, equity, and inclusion (DEI) policies, citing compliance with President Donald Trump's executive order.

This directive, issued in January, prohibits DEI practices in federal agencies and urges private companies to phase out similar initiatives.

In a memo sent to employees on Wednesday, Paramount's co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins explained that the company would adjust its policies to align with federal requirements. "As a result, some of our policies must change to comply with these new mandates," they wrote.

According to CNBC, one of the major changes includes removing numerical goals for hiring based on race, ethnicity, sex, or gender.

Additionally, the company will no longer collect such demographic data for US job applicants unless required by law. Paramount has also discontinued the DEI qualitative metric in its short-term incentive plan, which previously linked 5% of funding to progress on company-wide DEI initiatives.

Instead, 10% of the funding will now be tied to a "Workforce Culture and Development" metric focused on leadership development and employee engagement.

Paramount Joins Walmart, Amazon in Rolling Back DEI Policies

Despite these changes, the executives reaffirmed their commitment to maintaining an inclusive workplace.

"To be the best storytellers and to continue to drive success, we must have a highly talented, dedicated, and creative workforce that reflects the perspectives and experiences of our many different audiences. Values like inclusivity and collaboration are a part of the Paramount culture and will continue to be," the memo stated.

Paramount has long participated in DEI efforts, including donating millions to racial justice causes in 2020, establishing a supplier diversity program, and launching Content for Change, which aimed to reshape storytelling around racial equity and mental health.

The company also hosted an annual Inclusion Week and operated an Office of Global Inclusion.

The rollback of DEI policies places Paramount alongside other major corporations like Walmart, Target, and Amazon, which have similarly scaled back their DEI initiatives.

Meanwhile, companies such as Apple and Costco have publicly defended their DEI commitments despite federal opposition, Variety said.

Media companies have been adjusting their DEI policies following Trump's executive order. Earlier this month, Disney modified its initiatives, while PBS announced the closure of its DEI office due to federal funding constraints.

The Federal Communications Commission (FCC) has also begun investigating Comcast over its DEI practices.

Paramount's decision comes at a critical time, as the company seeks FCC approval for its merger with Skydance Media.

Additionally, it is navigating a lawsuit filed by Trump against CBS News over a "60 Minutes" interview with former Vice President Kamala Harris. The outcome of this lawsuit could influence the FCC's review of the merger, further entangling the company in political and regulatory scrutiny.

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