PepsiCo has announced significant changes to its diversity, equity, and inclusion (DEI) policies, departing from previous corporate initiatives as the company seeks to align its internal structures more closely with its broader business strategy.
Companies across all sectors have announced a withdrawal from DEI policies just this year. They include Citigroup, Goldman Sachs, Google, McDonald’s, and Target—after multiple companies such as Amazon, Lowes, and Walmart rolled back their initiatives last year.
According to a company memo from CEO Ramon Laguarta, PepsiCo will no longer have a dedicated DEI officer or team and will be discontinuing its DEI representation goals. The move comes as President Donald Trump and his administration are working to dismantle the practice across the federal government.
The company is also ending all DEI-related training programs and will no longer participate in the Corporate Equality Index (CEI) survey conducted by the Human Rights Campaign (HRC), an advocacy group focused on LGBT workplace inclusion.
The company is behind some of the biggest brand names across the globe—Gatorade, Mountain Dew, Tropicana, Rice-a-Roni, Cheetos, Doritos, Lays, Ruffles, Tostitos, Chesters, Cracker Jack, Frito-Lay, and a host of other well-known brands.
PepsiCo’s memo outlines a transition to what it calls an “Inclusion for Growth” strategy, which the company describes as an enterprise-wide approach to embedding inclusion throughout its operations as a driver of long-term business growth. The revised framework focuses on three key areas: people, business, and community.
Under the new structure, PepsiCo will continue efforts to attract and retain talent but will no longer maintain aspirational demographic representation targets. Instead, hiring and promotion will emphasize “skills and perspectives needed to succeed in a competitive market,” according to the memo.
Sponsorships and external partnerships will also be reevaluated under this new approach, with all event sponsorships expected to align with the company’s business priorities. In addition, PepsiCo is shifting its supplier diversity program to a broader initiative focused on growing its base of small-business suppliers.
The company also announced that its Employee Resource Groups (ERGs), which have traditionally served as platforms for underrepresented employees, will now be centrally managed to ensure their activities align with corporate objectives.
While PepsiCo is ending DEI-specific programs, the memo states that inclusion remains a core principle for the company, emphasizing a workplace culture where performance and contribution drive advancement.
“PepsiCo is, and always will be, a place where hard work and performance drive success,” the memo reads.
PepsiCo, a multinational corporation with over 318,000 employees and a market capitalization exceeding $200 billion, joins a growing list of major companies that have been scaling back DEI programs. Walmart and Amazon have also made adjustments in recent months amid shifting corporate priorities.
The broader corporate landscape has seen a shift in attitudes toward DEI, with some companies reevaluating their commitments in response to economic pressures and evolving shareholder expectations.
As PepsiCo moves forward with its new strategy, the impact of these changes on workplace culture, talent recruitment, and external partnerships will likely be closely watched by industry observers.
