Tech Companies “Quiet Cutting” their EDI Budgets

Terminology note: EDI stands for Equity, Diversity, and Inclusion, and is a rephrased abbreviation of DEI that emphasizes the need for equity first. Learn more in our recent post here.

Major layoffs, hiring freezes, and slashed budgets have been the theme of tech talent news for the past few months. What hasn’t been in the headlines though, is the significant funding being pulled from the people and culture budget, especially EDI (equity, diversity, and inclusion) initiatives.

This means that not only are BIPOC and female employees disproportionately impacted in tech layoffs, but remaining employees are losing the few systems of support within organizations.?

Despite years of talking about the business case for diversity, in times of financial crunch, these initiatives are still the first to go (and seem to go very very quietly…). We're calling it #quietcutting

?? REMINDER: EDI is even more important during a recession ??

• Despite major layoffs, we are still weathering the Great Recesssion (US Chamber, 2023)
• Gender diverse companies outperform peers by almost 50% in performance. "A substantial differential likelihood of outperformance—48 percent—separates the most from the least gender-diverse companies." (McKinsey, 2020)
• D&I is the key for thriving during recessions (Great Place To Work, 2020)

The (slim) silver lining? Slowdowns in hiring give your company an opportunity to prioritize retention and develop a strong organizational culture for your existing employees.?

"Right now, the organizations that are able to invest in building a more intentional and inclusive hiring process are going to have a huge competitive advantage as we emerge from the current market disruption." (Benefit News, 2023)

What you can do

As a #techleader

• After many years of fast expansion and hiring, when was the last time you reviewed your retention strategies? Double down on focusing resources towards retaining the current women you have, and supporting their upwards development within your company. (*cough cough*, like mentorship programs)
• Trust takes time to develop. Major cuts to your commitments silently confirm for employees and future talent what they were already thinking, that your EDI efforts were just for show. As Dr. Monica Cox says, it's time to "Stop playing diversity." (Time, 2023)
• Send this article to your boss, CEO, or anyone making key budget decisions. Advocate for the continued investment in EDI, using the real numbers and research used above.

As a #womanintech

• Remember that advancing EDI in tech is like throwing a pie party. Sharing a bigger slice with other party-goers doesn't mean you get a smaller slice, because we can always just bake more pie. The tech industry is continuing to grow, opportunities are continuing to emerge, and supporting each other doesn't take opportunities away from ourselves. It just makes more pie.

Remember, EDI work is a long-game, and you'll need to double down when times get tough. More coming soon from Chic Geek on ways to invest in your EDI efforts in a cost-effective way.