E-commerce giant Amazon (AMZN) is making changes to its diversity, equity, and inclusion (DEI) programs. This shift comes amidst a changing legal scenario and growing opposition to such programs. Shares of the company were trading 1.2% lower in the pre-market trading session today.
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As part of the changes, Amazon plans to phase out “outdated programs and materials” tied to diversity and inclusion. Further, AMZN plans to bring all its employee groups together and focus on more inclusive programs rather than having separate group-specific initiatives. This shift aims to create a more inclusive culture by integrating DEI efforts into existing processes.
The company has also made changes to its website on social and political issues. Specific sections dedicated to Black equity and LGBTQ+ rights on AMZN’s website have been merged into a single, broader diversity statement. Moreover, references to the company’s support for racial justice legislation, voting rights, and transgender rights have been removed.
Amazon Joins Shift in DEI Programs
Amazon’s move to revise its DEI programs is part of a wider trend, with major companies like Meta Platforms (META), Walmart (WMT), and McDonald’s (MCD) also scaling back or restructuring their diversity initiatives. Importantly, Apple (AAPL) is also in the news for scaling back its DEI initiatives.
The wider trend of changing DEI programs comes after the 2023 Supreme Court ruling that made it unconstitutional to use race as a factor in university admissions. Also, several activists, along with prominent figures like Elon Musk, have criticized DEI programs, accusing them of impacting efficiency and progress.
Is AMZN a Good Stock to Buy?
Overall, AMZN stock has a Strong Buy consensus rating based on 47 Buys and one Hold assigned in the last three months. At $249.16, the average Amazon price target implies 13.8% upside potential. Shares of the company have gained 13.6% in the past six months.
