Episode 23: The Impact of DEI Rollbacks on Logistics

In today’s episode of Holding the Line: A Logistics at a Crossroads Podcast, Gia dives into the consequences of scaling back Diversity, Equity, and Inclusion (DEI) initiatives in the logistics industry. While these programs have been proven to strengthen workplace culture, boost innovation, and improve team morale, recent rollbacks are threatening those gains.

Gia explores how the reduction of DEI efforts impacts not just employee engagement but operational efficiency, safety, and brand reputation. From legal and political pressures to the erosion of diversity-driven resilience, this episode sheds light on why DEI isn’t just a social priority—it’s a business necessity.

Tune in to learn what we can do to ensure DEI remains a core part of logistics operations, and why its rollback could have long-term consequences for both people and performance.

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Transcript

Gia (steady, grounded): Hey everyone, welcome back to Holding the Line: A Logistics at a Crossroads Podcast. I’m Gia.

In today’s episode, we’re diving into a critical topic that’s been quietly gaining traction in the logistics industry—Diversity, Equity, and Inclusion, or DEI. It’s a topic that’s often discussed in corporate boardrooms and policy papers, but what happens when these initiatives are scaled back, or worse—completely rolled back? What happens when the hard work put into creating inclusive, equitable environments starts to erode?

Well, I’m here to tell you—it doesn’t just impact people. It impacts operations, morale, and the reputation of a company. In this episode, we’ll explore the real-world consequences of DEI rollbacks in the logistics space and what that means for the future of our industry.

It’s a term that’s lived in our onboarding sessions and corporate mission statements for years. But lately, it’s disappearing. Quietly, sometimes abruptly, companies are rolling back DEI programs. And for logistics? That has real, lasting consequences.

Gia (calm but urgent):
 Let’s start with what happens on the ground.

DEI wasn’t just lip service. For many workplaces, it brought cultural shifts—psychological safety, accountability, and a sense of belonging. For logistics in particular, it brought in people who think differently—people who saw bottlenecks others didn’t, or who knew how to translate diverse customer needs into nimble supply chain responses.

Now, with programs disappearing, we’re seeing:

• A 32% drop in employee satisfaction and engagement where DEI was cut.
• Turnover costs soaring—as much as 200% of an employee’s salary, especially for knowledge roles.
• And within teams—frustration, silence, and burnout.

In short: it’s not just morale. It’s money. It’s momentum.

Gia (measured but serious):
 Let me give you some names.

Target. Once hailed for its DEI leadership, it quietly scaled back initiatives in 2024. By early 2025? Foot traffic had dropped 9.5%, and share value plummeted from $142 to $94. That’s a $12 billion loss in market cap. And now? They’re facing a shareholder lawsuit for misleading investors on DEI risks.

Walmart ended its racial equity programs in Q1. Revenue still rose—but backlash was swift. Trust, especially from Gen Z and millennial consumers, took a hit. And we know—once trust erodes, it rarely returns.

Even the broader Fortune 100? Mentions of “DEI” in public reports have dropped 98% year-over-year.

This tells us something: companies are backing off DEI—but the public isn’t done paying attention.

Gia (reflective):
 Why now? Why the rollback?

In early 2025, President Trump officially rescinded Executive Order 11246, which had required federal contractors to commit to DEI goals. Though the Fourth Circuit later paused that order, the damage was done.

Companies reliant on government contracts began scaling back quickly. Even private firms adjusted strategy, fearing political backlash or litigation risk.

A Littler Mendelson survey found:

• 45% of employers feared being sued for DEI-related programs.
• But 45% also planned to keep their DEI programs—fully aware of the long-term benefits.

That tension—between legal caution and cultural responsibility—is now reshaping our workplaces.

Gia (firm):
 Here’s where logistics comes in.

We’re an industry built on systems, speed, and people. If you narrow your talent pipeline—if your culture pushes out the very people who bring new ideas—you lose adaptability.

Think about it: when the Suez Canal shut down, or when tariffs squeezed margins, who solved it?

It was diverse teams—across regions, backgrounds, and roles—who found answers.

DEI isn’t about being politically correct. It’s about preparing your team for complexity. And right now? Complexity is the norm.

Gia (hopeful, proactive):
 So what now?

Let’s talk about what we can do—even as formal programs fade:

1. Recognize Silence: If your team’s quieter than usual, ask why. Run check-ins. People often disengage when they feel unseen.
2. Model Vulnerability: Leaders, don’t hide behind metrics. Share your own growth moments. Culture trickles from the top.
3. Promote Psychological Safety: Research shows that teams with high safety are 39% more profitable. Make it okay to fail. To challenge. To contribute.
4. Embed DEI in Strategy: Don’t isolate DEI. Make it part of how you hire, train, reward, and listen. That’s where the staying power is.
5. Be Transparent: If changes are happening, say why. Invite feedback. Let people be part of the conversation—not victims of it.

Gia (resolute):
This moment we’re in—it’s not just a rollback. It’s a reckoning. And the choice in front of every company is this:

Will we shrink?
 Or will we rise to meet complexity with equity?

If you’re leading—ask: What would our company lose without DEI?
 If you’re on a team—know this: your voice still matters.

Let’s keep showing up. Not just for freight. But for fairness.

🎙️ Until then, keep holding the line — and as always, remember that I’ll be navigating the crossroads right along with you.