Citigroup Scales Back DEI Policies Amid Shifting Political Landscape: Report

Citigroup, Inc. C shares are trading slightly higher in the premarket session on Friday.

The Financial Times reports that the bank is reportedly shifting its diversity policies for a more inclusive employee base.

In the wake of Donald Trump’s return to the White House, which has sparked a broader backlash against diversity, equity, and inclusion, or DEI targets, the report notes that Citigroup has decided to scale back its diversity efforts.

In a memo to employees on Thursday, CEO Jane Fraser announced that the bank would no longer set aspirational diversity representation goals unless mandated by local law. Furthermore, the bank will no longer require “diverse slates of candidates” or “diverse panels of interviewers” in its hiring practices, The Financial Times adds.

These changes mark a significant departure from the company’s previous DEI policies, which had included specific diversity targets for roles ranging from assistant vice presidents to managing directors.

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For instance, the bank’s 2022 goals aimed for 43.5% of women, 11.5% Black, and 16% Latino employees in these positions, the report further notes.

The announcement also included a rebranding of Citi’s “Diversity, Equity, and Inclusion and Talent Management” team, which will now be known as “Talent Management and Engagement.”

Fraser explained that these changes were in response to shifting dynamics in diversity initiatives across U.S. institutions and stated that further updates could follow in the coming weeks.

According to Benzinga Pro, C stock has gained over 47% in the past year. Investors can gain exposure to the stock via First Trust Nasdaq Bank ETF FTXO.

Earlier this month, Accenture plc announced it would be scrapping its global diversity and inclusion goals, marking a significant shift in its policies.

CEO Julie Sweet informed staff in a memo that the company will begin “sunsetting” its diversity goals set in 2017, along with career development programs aimed at specific demographic groups.

This move follows an evaluation of the company’s internal policies in light of the evolving political climate in the U.S., including recent Executive Orders that Accenture must comply with.

Price Action: C shares are trading higher by 0.57% to $81.80 premarket at last check Friday.

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