Diversity Lab, a legal industry consulting firm that promotes diversity practices in law firms and corporate legal departments, is closing its doors due to “meritless attacks by government agencies,” according to its founder. The US Federal Trade Commission attempted to enforce a settlement that would ban the firm from collecting or sharing law-firm-specific data and shut down its diversity certification program, as per Reuters. Diversity Lab, founded in 2013, furloughed its 17 employees and paused operations as it sought to resist the FTC’s investigation, which brought the firm to the
Black Women’s unemployment rate has reached 7.3% in 2026, according to the Bureau of Labor Statistics. Last year, Black women’s unemployment rate increased from 5.1% in March to 6.1% in April, reached an all-time high of 6.2% in May, then dropped to 5.8% in June, according to Bureau of Labor Statistics data reported by The 19th. DEI and AI affecting Black women’s employability Black women are more likely to be in departments of Education, Health and Human Services, and Housing and Urban Development, which have been targeted for cuts by DOGE.
PayPal and the Department of Justice have agreed to a settlement concerning the company’s 2020 DEI initiative, which invested in Black and minority businesses. PayPal is required to launch a new Small Business Initiative that excludes characteristics such as race, according to a press release. “This Department of Justice is delivering on President Trump’s vow to root out illegal DEI from every corner of corporate America,” said Acting Attorney General Todd Blanche. PayPal’s settlement with the Department of Justice In 2020, PayPal announced the discriminatory Economic Opportunity Fund, which provided $530
IBM has agreed to pay $17 million to the US Department of Justice to settle allegations of illegal DEI practices, as CNN reported. The DOJ believes that the tech company engaged in illegal DEI practices” by factoring in “race, color, national origin, or sex” when hiring or promoting employees. The settlement “IBM is pleased to have resolved this matter. Our workforce strategy is driven by a single principle: having the right people with the right skills that our clients depend on,” an IBM spokesperson told TechCrunch. In May 2025, the
Fortune 500 companies cut public disclosure of diversity and inclusion efforts by 65% in 2026, according to the Human Rights Campaign Foundation’s latest Corporate Equality Index data. A press release from the Human Rights Campaign Foundation (HRCF), attributes the pullback to a political and regulatory environment that leaves corporate leaders unsure how to communicate DEI while meeting expectations from employees, shareholders, and consumers. The shift matters because disclosure operates as a market signal and a governance artifact. When firms reduce public reporting, workers and investors lose a standardized way to
Target’s new CEO, Michael Fiddelke, told employees in Minneapolis on Feb. 4, 2026, that he plans to rebuild customer and employee trust after the retailer’s pullback from DEI triggered backlash. Reporting from Bloomberg News shows Fiddelke used his first town hall to concede that Target “lost” trust and that leadership failed to communicate clearly in the moment. CNN reports that the credibility gap was tied to the dismantling of DEI commitments, including a program that helped Black-owned businesses secure shelf placement, plus the removal of minority hiring goals and the
The US Department of Justice (DOJ) has opened investigations into diversity, equity, and inclusion (DEI) initiatives at several major companies, including Google and Verizon, The Wall Street Journal reports. The DOJ is using the False Claims Act to assess whether companies misrepresented their hiring or promotion practices while receiving federal funds. DOJ Targets DEI Using Fraud Law In a May memo from Deputy Attorney General Todd Blanche instructed prosecutors to investigate and pursue cases against federal funding recipients that knowingly engage in “preferences that create benefits or burdens based on
Target announced it will cut 1,800 corporate jobs after trying to grow following four years of roughly stagnant sales and boycotts amid DEI backlash. In a memo sent to staff, Target’s incoming CEO, Michael Fiddelke, said the eliminated roles include about 1,000 employee layoffs and about 800 positions that will no longer be filled. “This spring, we launched our enterprise acceleration efforts with a clear ambition: to move faster and simplify how we work to drive Target’s next chapter of growth,” Fiddekele said in a company memo, shared by CNBC. “The
Target is spotlighting its partnership with Russell Innovation Center for Entrepreneurs (RICE), a program supporting Black small business founders with access, education, and community, amid ongoing boycotts over its decision to rollback DEI initiatives. In a press release published on October 20, 2025, Target detailed its partnership with RICE, which began in 2020 and was renewed in 2024. The release comes just months after CEO Brian Cornell stepped down, following low foot traffic and sales. Target’s partnership with RICE The RICE’s Retail Readiness Academy (RRA) has allowed Black founders to expand
Tabitha Brown says her business has taken a “major hit” following boycotts of Target earlier this year. The backlash came after Target announced in January 2025 that it would end its diversity, equity, and inclusion (DEI) initiatives, including programs supporting Black- and minority-owned brands. Brown, who sold home décor and hair care lines through the retailer, has since pivoted with the April launch of her Tab & Chance fragrance, sold directly to consumers. Target Boycott affecting Black Businsesses When the boycott was announced, Brown said she understood the desire for
