Google Adjusts Diversity Hiring Goals to Comply with New Government Contractor Regulations
Google has recently made changes to its diversity hiring targets, following a trend among U.S. companies that are reevaluating their diversity, equity, and inclusion initiatives. The decision was communicated to Google employees via email after President Donald Trump issued an executive order targeting government contractors' DEI programs.
As a major tech player, Google provides technology and services to the federal government, including its cloud division crucial for its artificial technology advancements. Alphabet, Google's parent company, reflected this shift in its recent 10-K report filed with the Securities and Exchange Commission.
The annual report no longer includes a statement committing to integrating diversity, equity, and inclusion into all aspects of the company and building a workforce representative of its users. With an annual revenue of $350 billion and a global workforce of 183,000, Google plays a significant role within Alphabet.
In response to these changes, Google stated, "We're committed to creating a workplace where all our employees can succeed and have equal opportunities." The company is reviewing its programs to align with recent court decisions and executive orders as a federal contractor.
The alteration in language coincided with Google CEO Sundar Pichai and other tech leaders standing alongside Trump during his inauguration. Meta and Amazon had already made adjustments to their DEI programs in anticipation of the new regulations.
Beyond the tech industry, several companies like Walt Disney Co., McDonald’s, and Ford have also reevaluated their DEI initiatives. Trump's executive order threatens financial penalties on federal contractors with deemed "illegal" DEI programs, potentially facing significant damages under the False Claims Act.
The order mandates federal agencies to investigate publicly traded companies and large non-profits with DEI policies that may be considered discriminatory or preferential. Companies are now challenged with understanding which DEI policies could be deemed "illegal" under the new regulations.
Diversity initiatives in both public and private sectors encompass various practices, from anti-discrimination training to recruiting more minority groups and women. Google, headquartered in Mountain View, California, intensified its efforts to hire underrepresented groups following the social justice movements in 2020.
Despite progress, Google's leadership remains predominantly Asian and white. The representation of Black individuals in leadership roles increased from 2.6% to 5.1%, Hispanic representation rose from 3.7% to 4.3%, and women in leadership roles increased from 26.7% to 32.8% according to Google's diversity report.
Overall, Google's workforce comprises 5.7% Black employees, 7.5% Latino employees, and two-thirds male employees. The company continues to strive for a more diverse and inclusive workplace amidst evolving regulatory landscapes.
Google adjusts diversity hiring goals in response to new government contractor regulations.
Trump's executive order threatens financial penalties for companies with "illegal" DEI programs.
Companies face challenges in understanding which DEI policies may be deemed "illegal."
Source: AP NEWS