Microsoft has disbanded its internal team dedicated to diversity, equity, and inclusion (DEI) due to "changing business needs," as reported by Business Insider. The layoffs became effective on July 1 and have caused controversy within the company. Despite Microsoft's previous commitments to enhancing diversity efforts, including a 2020 pledge to double the number of Black and African-American leaders by 2025, the current progress on this initiative is unclear.
A leader of the dissolved team criticised the decision in an email to thousands of Microsoft employees, stating that the team is no longer considered critical for the company. This move comes in the midst of a broader trend in the tech industry, as companies like Zoom, Google, and Meta have also reportedly scaled back their diversity programs in recent months.
These layoffs are part of Microsoft's annual workforce adjustments, which usually occur around the start of its fiscal year. However, the company has been conducting more frequent rounds of job cuts lately, including a significant reduction of 10,000 employees announced in early 2023.
A Microsoft spokesperson, Jeff Jones, stated that the company's diversity and inclusion commitments remain unchanged. "Our focus on diversity and inclusion is unwavering, and we are holding firm on our expectations, prioritising accountability, and continuing to focus on this work," Jones said in a statement to Business Insider.
Meanwhile, Microsoft has decided to relinquish its board observer seat at OpenAI as a measure to address concerns from U.S. and UK antitrust regulators regarding its level of control over the AI startup, particularly in light of the increasing popularity of generative artificial intelligence. However, a source at the U.S. Federal Trade Commission stated that this change is unlikely to alleviate the agency's concerns.
The FTC is currently conducting an antitrust review of agreements involving major tech companies and leading AI firms. This move by Microsoft suggests that the company is recognizing the potential for significant antitrust scrutiny and is taking proactive steps to address it, according to the FTC source.
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