Is DEI Dead?

Is DEI Dead?

Mentions of ‘DEI’ in Fortune 100 earning reports dropped 98% from 2024 to 2025. That’s all you need to know to prove DEI is dead, right?

Not quite..

DEI isn’t dead. It’s just in a markdown phase.

We’re in a moment that defines what will come next. Are you ready?

This Juneteenth, I’m reflecting on the journey of DEI over the past decade plus. To do that, I’m borrowing a metaphor from an unlikely place: the stock market.

DEI as a Market Cycle

Markets move in four phases: accumulation, markup, distribution, and markdown (or down-trend).

Investors who understand this pattern know not to panic in downturns or overextend during bubbles. They look for long-term value and recognize that every cycle, no matter how steep the dip, can lead to the next rise.

DEI is following a similar trajectory. Here’s how I’ve seen it unfold.

Phase 1: Accumulation (2013–2017)

In market terms, accumulation is when institutional investors start buying in quietly and carefully after a downturn. There’s little hype, but conviction is growing behind the scenes.

That’s what DEI looked like in the early 2010s.

Most companies weren’t talking about DEI publicly. Few had formal strategies, and even fewer had executive roles dedicated to the work. In 2018, fewer than half of S&P 500 companies had a Chief Diversity Officer or equivalent role. One way to measure commitment.

This matches what I saw firsthand.

When I worked at a school serving low-income boys in Boston, we cared deeply about diversity, but we didn’t operationalize it. Later, at a boutique recruiting firm, DEI barely came up in leadership meetings or hiring plans. (Ironically, I’d go on to join that same firm’s DEI advisory board years later. A sign of how quickly the landscape evolved…)

Still, the seeds were being planted. This was the era when the “business case” for DEI began to solidify. McKinsey’s 2015 Why Diversity Matters report gave DEI credibility in boardrooms. Google’s 2014 diversity report set a precedent for transparency. Quiet progress was underway, even if the headlines hadn’t fully caught up yet.

Phase 2: Markup (2017–2022)

In a markup phase, prices rise quickly. Everyone wants in. The early adopters look smart. Momentum and hype build quickly.

That’s what happened to DEI starting around 2017.

I joined HubSpot that year. It was a progressive, high-growth tech company, but even there, the diversity numbers weren’t great, especially in leadership. (I’m still surprised I joined looking back on these numbers)

In 2018, I was invited, along with a few other employees of color, to share our experiences directly with company leadership. What we said wasn’t surprising: feelings of isolation, imposter syndrome, subtle discrimination. But to many execs in the room, it was eye-opening.

To their credit, they responded. HubSpot hired its first senior DEI leader, launched cross-functional accountability teams, and revamped sourcing strategies to improve representation. It wasn’t performative. It was intentional, resource-backed change that resulted in a massive shift in the culture.

This mirrored a broader trend. DEI roles increased by 73% between 2016 and 2020. Leaders saw it as a strategic priority. The public wanted action.  Meaningful progress was being made, although slowly.

And then came 2020.

George Floyd’s murder was an even greater accelerant. It brought a phase of irrational exuberance to DEI.  It went from making steady, healthy progress to becoming a meme stock - everyone wanted in on the action.

But for many companies, it wasn’t about embedding DEI into how the business worked, it was about optics. Splashy pledges, LinkedIn posts, and performative hires with no strategy behind them. It was the classic sign of a bubble waiting to burst.

Just like the markup phase in the markets, once the hype train takes over, it’s only a matter of time before the bottom falls out. Eventually, expectations outpace reality. And that’s when the distribution phase begins.

Phase 3: Distribution (2022–2024)

The distribution phase signals the downturn’s beginning, and it often comes quickly.

After HubSpot, I joined Salesloft, another high-growth software company. Initially, it had a Chief Diversity Officer and typical DEI initiatives: ERGs, events, diverse hiring partnerships. They had a classic “2020 wave rider” setup.

But as software valuations sharply declined from late 2021 to early 2023, Salesloft needed to cut expenses. The Chief Diversity Officer role was the first to go. This move was easy to justify because DEI had never been integrated into their business strategy. It was sad to see..

Salesloft wasn’t alone. Employers cut more than 13% of DEI-related roles starting in early 2023. Roles once considered essential became expendable.

The policy and social climates also started turning against DEI, exemplified by the Supreme Court’s 2023 decision banning affirmative action in college admissions and the rising political “war on woke.”

2023 marked the the beginning of DEI’s bear market, which continues today.

Phase 4: Markdown (2024–???)

That brings us to now.

Today, political pressures push organizations away from DEI commitments through executive orders and legal reinterpretations. There’s a powerful force fighting against the progress of the past decade.

It’s disheartening—especially having worked on and benefitted from initiatives that created real belonging for underrepresented talent. However, that doesn’t mean great work isn’t still being done and progress is being made. Maybe it’s name has changed (by the way, I’m all for rebranding the work at this point as the brand of ‘DEI’ has been captured by the short sellers..) but I know great work is still going on, even in organizations like my own.

Is this moment necessary? It may be. Maybe it was necessary to move away from superficial gestures and toward deeper integration into business strategy. Maybe it will continue for a few years before a new force takes hold.

I can’t predict the future. But I remain hopeful and patient.

In the markdown phase, markets eventually find their bottom and start a new cycle. I believe DEI will rebound and re-enter an accumulation phase. When? Only time will tell.

What Now?

If you feel helpless, here’s some classic investment advice, adapted for DEI:

Don’t follow the herd. Be a contrarian investor. Keep investing in DEI where you can and however you can. It will pay off, especially when we return to a phase of accumulation. Props to the large organizations who have the ability to take a stand btw. (from a proud Costco customer).

Have faith in the long game. Like the market, DEI cycles through highs and lows. This is the bottom. But you should never sell low, right? Your commitment today will compound tomorrow, even if it’s not readily visible.

Focus on what you can control. You might not change your company’s political stance or budget decisions. But you control how you show up, how you lead, and how you create space for others. Small actions by a lot of people will still drive meaningful change.

Final Takeaway

Juneteenth marks the day the last enslaved people in the U.S. were freed in Galveston, Texas, more than two years after the Emancipation Proclamation.

It’s a celebration of freedom. A reminder that nothing is permanent. That change is possible, even if delayed.

We are far from the days of slavery, but equality still doesn’t exist in the U.S. - especially not in the workplace. A focus on equity remains necessary. And we all share responsibility for building systems that create opportunity.

DEI is nowhere near dead. This markdown is just a phase. And when the cycle begins again, DEI (or a rebranded version of it) will still be here. 

The only question is: Will you be ready?

Happy Juneteenth,

Winston

P.S: All thoughts here are my own and do not represent my employer.

P.P.S: I realize this is not career-oriented content, but it’s a topic I’m passionate about and wanted to take the time to write on it.