AGENCIES QUIETLY REDUCE DEI INITIATIVES AMID POLITICAL PRESSURE

LATEST DEVELOPMENT

Major advertising holding companies WPP and IPG have discreetly removed public DEI commitments from their websites as the Trump administration targets diversity initiatives, joining a broader corporate retreat from DEI language and programs.

INDUSTRY TALK

BY THE NUMBERS

Key changes include:

• 200+ major US corporations removing DEI mentions from annual reports

• 2 advertising holding companies (WPP, IPG) altering website language

• 74% of mergers receiving "second requests" from FTC being abandoned or restructured

• Declining trend in companies incorporating DEI metrics in executive compensation in 2024

• 90-day window between observed website changes (November to March)

CORPORATE CAPITULATION

Notable shifts include:

• WPP removing language about building "a workforce that reflects diverse communities"

• IPG eliminating statements linking CEO compensation to diversity goals

• WPP replacing "diversity, equity, and inclusion" terminology with "people and culture"

• Companies across industries (Amazon, Meta, Google, Disney) scaling back DEI commitments

• Comcast/NBCU facing FCC investigation into its diversity initiatives

POLITICAL CONTEXT

Background factors include:

• Broader federal efforts to scale back corporate DEI programs

• Ongoing FTC review of IPG-Omnicom merger amid heightened scrutiny

• Corporate uncertainty about navigating "contested public arena" on social issues

• WPP's acknowledgment of monitoring "developments" with legal implications

• Shift from increasing DEI metrics in executive compensation (2021) to declining (2024)

THE BOTTOM LINE

As advertising agencies and corporations navigate an increasingly politicized business environment, the quiet removal of public DEI commitments signals a strategic retreat from diversity initiatives—reflecting broader corporate uncertainty about balancing social values with political and regulatory pressures in the current administration.