Microsoft has removed diversity and inclusion from mandatory employee performance reviews, a significant shift from its 2020 commitments. The company also won’t publish its annual diversity report this year, citing a move to more dynamic formats. This follows the disbanding of an internal DEI team and a focus solely on ‘inclusion’ in HR documentation, sparking mixed employee reactions.

Microsoft has eliminated diversity and inclusion as companywide core priorities from employee performance reviews, marking a significant retreat from commitments made following the 2020 George Floyd protests, according to reports from The Verge and Game File.The changes, implemented last month through the company’s internal Connect system, removed mandatory questions requiring employees to detail their contributions toward diversity and security improvements. Previously, workers had to answer “What impact did your actions have in contributing to a more diverse and inclusive Microsoft?” alongside similar security-related queries, The Verge reported.The Redmond giant announced the alterations via a Viva Engage post rather than mass email, describing them as a “simplification” where core priorities are now simply called goals. According to Wired, Microsoft has also confirmed it will not publish its annual diversity and inclusion report this year, ending a streak of public disclosures dating back over a decade.

Microsoft steps back from decade-long transparency commitments

Frank Shaw, Microsoft’s chief communications officer, stated the company has “evolved beyond” traditional reporting “to formats that are more dynamic and accessible—stories, videos, and insights that show inclusion in action.” However, internal HR documentation now uses only “inclusion” instead of “diversity,” stating that “inclusion is embedded in how you work, interact, and lead.”The policy shift follows President Donald Trump’s executive order targeting corporate DEI initiatives earlier this year. In July 2024, Microsoft laid off an internal DEI team due to “changing business needs,” with the team leader writing in an internal email that “true systems-change work associated with DEI programs everywhere are no longer business critical or smart as they were in 2020,” Business Insider reported.

Employee reactions reveal internal tensions over policy changes

Employee responses have been mixed. Others weren’t surprised by the retreat. Several employees cited CEO Satya Nadella’s controversial decision to showcase Elon Musk at Microsoft’s Build conference in May—when Musk was actively dismantling government DEI programs—as a signal of shifting priorities. The appearance particularly angered Microsoft’s GLEAM group representing LGBTQIA+ employees and allies.Despite the changes, Microsoft spokesperson Jeff Jones insisted: “Our D&I commitments remain unchanged. Our focus on diversity and inclusion is unwavering.”