With DEI On The Federal Chopping Block, Some Companies Stay Committed

In this week’s edition of Forbes Edge, we’ll offer a refresher on how to maintain a healthy work-life balance, take a look at what a hiring freeze at the IRS could mean and more. But first, let’s dive into the latest on which companies are axing their DEI commitments, and which are standing firm:

Diversity, equity and inclusion programs are on the federal chopping block. Within hours of being sworn in last week, President Donald Trump quickly placed DEI workers on leave, removed DEI measures and protections for federal agencies and contractors, and went as far as eliminating DEI in the military.?

It’s part of a larger pattern of organizations axing their DEI programs. Just this week, another major retailer announced that it would be nixing its diversity initiatives (see the quiz below for the answer), including participating in external DEI surveys, eliminating anti-racism and bias training for employees, and renaming its “supplier diversity” team to a “supplier engagement” team.?

But while one in eight companies say they plan to reduce or eliminate their own DEI programs this year, some of the world’s most powerful CEOs reiterated their commitment to diverse workforces last week. JPMorgan CEO Jamie Dimon stood firm against calls for the financial giant to end its DEI programming, emphasizing his commitment to not being swayed by partisan pressure and refusing to “pander to any which side or any which thing.”?

Others who stood behind their company’s initiative include Nasdaq CEO Adena Friedman, Alexandr Wang of Scale AI and Pinterest’s Bill Ready, according to CNBC. Costco shareholders also voted against a proposal that would have ended the company’s DEI efforts.?

Not everyone is celebrating the Costco vote––19 Republican state attorney generals signed a letter urging Costco CEO Ron Vachris to “end all unlawful discrimination imposed by the company through diversity, equity, and inclusion (“DEI”) policies.”

If you are a manager or a business owner, here’s what you need to know about Trump’s DEI rules.?

Happy reading, and hope you all have a lovely week!

— Maria Gracia Santillana Linares, Careers Reporter

Work Smarter

Practical insights and advice from Forbes staff and contributors to help you succeed in your job, accelerate your career and lead smarter

Don’t create a “boogeyman,” or a shared enemy, to motivate your employees.?

You can build your brand beyond the world of social media. Take up speaking engagements or host your own events to grow your personal brand.?

Struggling through the first month of the year? Here’s a refresher on how to maintain a healthy work-life balance.

Reporter's Notebook: An AI Startup Graduates From Job Search To Career Companion

AI-powered job search and career companion Teal raised a fresh $7.5 million in its Series A round last week. I spoke with its founder, David Fano, about the company’s push into direct-to-consumer AI interview prep and compensation comparison. You can read the full piece here.?

There’s a number of websites and companies that allow you to use AI to spruce up your job application materials (yes, even beyond ChatGPT).??

But one company is evolving from a straightforward job search assistant to a larger career companion. Teal, founded by WeWork’s former chief growth officer David Fano, announced last week it raised $7.5 million to fund its expansion. The raise comes alongside the news of two new integrations—AI interview prep and salary and benefits comparison.?

The tools are especially tailored for folks looking to get hired rather than the ones hiring. “We're not for the solopreneur nor the entrepreneur,” says Fano. “We’re for the intrapreneur, for the employee who wants to be an employee and doesn’t wanna feel capped by what the company is dictating for them.”

Fano started Teal in 2019 with the mission of helping workers take charge throughout their careers. But the pandemic-driven rise in unemployment and the rise of AI forced him to rethink Teal’s initial offerings. He decided to first build a job search tool, which would help job seekers with the first steps of an application.

“It's harder to convince somebody outside of that job search moment to take out their credit card and sign up for a service that is going to help you further your career,” says Ben Lerer, managing partner at Lerer Hippeau, an investor in Teal.

That is Teal’s biggest challenge, according to Lerer: finding customers willing to pay $9 per week for Teal premium beyond the time they spend looking for their next gig.?

But for those willing to pay out of pocket for their own career journey tools,Teal gives them unlimited access to AI rewrites, interview questions and feedback.

TOUCH BASE

News from the world of work

Federal hiring freezes are already being felt at a number of government agencies. At the IRS, for example, candidates with start dates on or before February 8 will still be allowed to start work, but anyone with later start dates or an unconfirmed time will have their offer revoked.?

President Donald Trump is settling into his role as chief executive of the U.S. government as an employer. In his first two weeks in office, he has let go of thousands of government staff, including government appointees, federal employees working in DEI roles and even a Coast Guard commandant. Top leaders of the U.S. labor board have also been fired.?

Workplace immigration raids have started across the country. On Thursday, Newark mayor Ras Baraka criticized the raids in the city, in which federal agents detained several people, including U.S. citizens. Businesses are starting to feel the impact too—planned raids in Chicago have left employers in the restaurant and food industry weary. Here’s what businesses and employers need to know about how these raids may impact them.??

Return-to-office mandates are in full swing across corporate America, but high performers and employees with unique skills or talents could be exempt from full-fledged returns. It’s creating a “new hybrid hierarchy,” the Wall Street Journal reports.?

Single-parents in Spain will now be getting the same amount of paid parental leave as couples, thanks to a new court ruling. That would increase the time allowed off from 16 weeks to 32 weeks for single parents.

QUIZ

Which of the following companies have eliminated its previous DEI programs and initiatives?

A. Target

B. Costco

C. JPMorgan

D. Goldman Sachs

Check if you got it right here. ??