DEI initiatives are a critical element of the future of work but news of Zoom’s DEI job cuts make it appear as though some businesses are hoping for it to remain an element of the past. Zoom’s DEI layoffs were part of a company-wide round of job cuts with 150 employees facing the brunt of the decision. The formal set-up of Zoom’s DEI initiative took place around 2020 in the midst of the global pandemic. While other companies were struggling to break even and keep their operations afloat, Zoom was one brand that was growing exponentially and it was well-placed to develop its operations and consider additional areas of growth, such as the development of Zoom’s internal diversity and inclusion policies. Now it seems that these initiatives have lost their shine for many big players, making the Zoom job cuts likely the first of many we shall see soon enough.
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Zoom DEI Priorities See a Shift in the Year of Layoffs
Teams that are not critical to keep operations running have often been treated as the most dispensable and Zoom’s DEI layoffs signal the potential start of another alarming trend this year. While we stand by the idea that the role of HR will never be obsolete for an organization to execute its most basic functioning, it appears that HR-adjacent roles aren’t quite as unshakeable. Still, it doesn’t mean that the Zoom diversity and inclusion programs are coming to an end entirely and permanently. It instead means that the company no longer wants to have an internal team to handle this work. Instead, the company will hire external experts and consultants to regulate the matters of DEI.
According to Bloomberg, the chief operating officer Aparna Bawa Zoom was planning on changing its approach to DEI, and a spokesperson speaking to HR Drive added that “Zoom remains committed to DEI and ensures its principles remain firmly rooted in our DNA across our entire company.” It will take a while for us to fully understand just how much the company seems DEI rooted in its internal workings but for now, all we know is that the company is planning on redirecting its resources to other, more critical, areas. “We want to support and champion inclusion by embedding our values — and what it means to be a Zoomie — directly into our people programs rather than as a separate initiative after the fact,” was what Bawa had to say on the matter.
Are the Zoom DEI Layoffs the Only Indication of Shifting DEI Support?
It could be all too easy to dismiss the Zoom job cuts as an outlier incident in the bigger picture and continue hoping that companies do not dismiss diversity and inclusion programs in their planning but that would be an inaccurate representation of the market’s perspective right now. After the socially volatile climate of 2020, Google and many other tech leaders promised to do their part and improve the opportunities available for underrepresented communities. In order to stick to their word, many DEI programs were initiated and hiring began on a much larger scale to fill the quotas set by these businesses. This pace of progress was set to be short-lived, however.
Putting data together from various sources, CNBC summarized that by mid-2023, DEI-related job postings had seen a steep 44 percent drop and by November, it further fell to 23 percent. Not only were companies no longer hiring for DEI posts, but it also soon became evident that third-party organizations that were supporting companies with DEI expertise were also seeing clients slowly back out of their DEI efforts in favor of other investments. One such company, Brij the Gap Consulting, also reported to CNBC that some of their clients had cut DEI budgets midyear by as much as 90 percent. In 2023, Google was at the center of multiple reports of its uncertainty about how it wanted to tackle its diversity investments.
The Zoom DEI layoffs are a result of a much larger trend of slicing off investments that don’t bring immediate returns and are easier for companies to sacrifice when compared to other teams. FastCompany reported on Zoom’s 2020 hiring of a Chief Diversity Officer, Damien Hooper-Campbell, and how 22 months later he was gone and never replaced. Felicia Mayo, CDO at Nike, left after less than two years at the company, the second diversity officer to quit in three years. In 2023, BBC’s creative diversity director, Joanna Abeyie, left the company only a year and a half after taking on her role. Karen Horne, leader of Warner Bros. Discovery Diversity, Equity & Inclusion for North America, also had to move on from her position during some restructuring efforts at the company.
Will DEI Remain a Priority?
Even as DEI initiatives were growing in 2021, the average tenure for Chief Diversity Officers was estimated to be around two years, the shortest of C-suite executives according to Korn Ferry. It seems that companies have long committed only half-heartedly to their DEI initiatives before moving on to other investments. The problem appears to be that many companies kickstarted their diversity initiatives in a rush without fully planning out a realistic strategy for how they wanted to fulfill the promises they were making. Instead of dedicating resources to keep these initiatives a priority and have an active team working on the issue, it was more of an additional pressure that they weren’t fully willing to commit to.
Regardless of how companies feel about it, Gen Z and Millennial employees do appear to prioritize their DEI efforts so if businesses want to continue acting in good faith, it is likely that they will have to return to DEI efforts soon enough. Outsourcing these initiatives is not a bad alternative either as many organizations are specifically experienced in ensuring diversity and creating room for individual talent. However, companies do need to take a stable and consistent stand on the matter for this investment to be worthwhile.
The Zoom DEI efforts, even if outsourced, could be done correctly as long as the company values the feedback they receive from these consultants. Zoom’s job cuts do not have to mean the end of diversity and we’re hopeful that we’ll see these programs come back stronger than ever before.
