Boeing, the well-known aerospace company, has implemented a significant change amid efforts to address substantial financial and reputational challenges associated with concerns over its aircraft’s safety and quality. The company is currently dealing with a major strike involving approximately 33,000 unionized employees, which has been ongoing for more than a month. These workers are advocating for improved benefits, such as wage increases and retirement security. Analysts have estimated that this strike could potentially cost Boeing around $1 billion monthly.
During the third quarter of this year, Boeing reported a loss of $5.7 billion from operations, prompting the company to make strategic adjustments, including the controversial decision to dismantle its global diversity, equity, and inclusion (DEI) department. According to a Bloomberg report, this decision was executed under the leadership of Boeing’s new CEO, Kelly Ortberg. The employees from the former DEI department will now be reassigned to another human resources team, focusing on talent and employee experience.
This strategic shift follows a commitment made by Boeing’s former CEO, Dave Calhoun, in 2020, to increase the company’s Black employee representation by 20% by 2025. Since then, Boeing has achieved a 17% increase in Black employees, making its U.S. workforce 7.5% Black. Additionally, in 2023, the company reported a 37.6% boost in racial and ethnic minority representation in its U.S. workforce, as noted in its latest Sustainability & Social Impact Report.
In response to Boeing’s restructuring of its DEI initiatives, conservative activist Robby Starbuck asserted on social media platform X that he had previously informed Boeing’s CEO and chair about his intention to “expose their woke policies.” Starbuck suggested that these policies potentially include intersectionality training and employee resource groups divided by race and sexuality, among others.
The recent decision by Boeing is part of a broader trend where companies are re-evaluating their DEI policies due to concerns over potential legal and reputational harm. According to a Bloomberg analysis, over two dozen public companies have cited DEI as a risk factor in their SEC filings, a trend that gained momentum following the U.S. Supreme Court’s decision to end affirmative action in college admissions in June 2023.
Additionally, consumer responses have demonstrated the potential impact on businesses when there is disagreement with corporate views. In 2023, Bud Light experienced a significant boycott that drastically affected its parent company, Anheuser-Busch, resulting in continued financial challenges after a controversial social media campaign featuring transgender influencer Dylan Mulvaney.
