Sadly, when the world’s biggest companies backtrack on DEI, the ripple effects spread fast. UK businesses may start to wonder, should we follow? Should we cut funding, scrap diversity targets, and roll back progress? 

Here’s why that would be a massive mistake. First, the optics. If there’s one thing today’s consumers, employees, and investors pay attention to, it’s whether companies practice what they preach. A business that loudly championed inclusion in 2020 but quietly ditches it in 2025 looks disingenuous at best, opportunistic at worst. 

Cutting these programmes isn’t just about optics or looking bad in the eyes of consumers. It’s about losing ground in a competitive market. DEI is a business strategy that drives growth, innovation, and resilience. Without it, companies risk missing out on diverse talent, fresh perspectives, and the kind of customer loyalty that can make or break your success.

So, while it might be tempting to follow the trends set by those big US corporations, doing so would be a grave mistake for any UK business hoping to stay relevant in the modern economy. Let’s explore why DEI cuts don’t just damage your brand’s image, they harm your business in ways you can’t afford to ignore.

Missed opportunities for innovation and growth

When you cut DEI programmes, you’re not just slashing budgets. You’re slashing creativity. You’re closing the door on new ideas.

Innovation thrives when you bring together people from different backgrounds, with different experiences, perspectives, and ideas. That’s how you get the breakthrough moments that set you apart from your competition. It’s how you create products, services, and experiences that resonate with a wider audience.

But don’t just take my word for it, look at the numbers. 63% of leaders in companies with mature DEI programmes say that these efforts have had a major positive impact on their agility and innovativeness. In contrast, only 30% of companies just starting out with DEI can say the same.

If you’re only hiring people who think like you, look like you, and have the same experiences, you’re limiting your potential. You’re not tapping into the best ideas out there. 

Losing out on the talent of tomorrow

Think about the next generation of talent. They want to know that the company they work for stands for something. They want to know that your values align with theirs and that you’re committed to diversity, equity, and inclusion. If they don’t see that, they have options, and they’ll go somewhere where their voices are heard, where they can make a real impact.

In 10 years, by 2035, Gen Z is going to make up 31% of the workforce, and Gen Alpha will be at 19%. That’s 50%, half of the workforce. Now, these generations are all about diversity and inclusion. They’ve grown up in a world where movements like #BlackLivesMatter, #MeToo, and climate change activism have shown them the power of standing up for what’s right. They’ve seen the way social media allows for movements to go global and spark real change.

They expect the companies they work for to be part of these movements, to be actively involved in making the world a better place. In fact, 56% of Gen Z-ers say they’d not accept a job without diverse leadership and it’s very likely that, as Gen Alpha starts to enter the workforce, that number will rise. This is a generation that won’t just sit on the sidelines. They want to be part of something bigger, something meaningful, and if your company isn’t championing DEI, you’re going to miss out on the talent that will define the future.

Risk of alienating consumers

Let’s take a trip back to 2017, when Pepsi launched an ad featuring Kendall Jenner in the middle of a protest. The idea was to link the brand to social movements, but the execution … a total disaster. In the ad, Kendall Jenner walks up to a line of police officers during a protest, hands one a Pepsi, and, bam, the tension is resolved. 

As you can imagine, the backlash was swift and loud. People didn’t see this as a clever marketing move but as an attempt to trivialise real social justice movements, like Black Lives Matter, and use them as a backdrop to sell soda. Many people took to social media to say that It felt like Pepsi was trying to profit off struggles they didn’t understand.

Question: do you think if there had been a more diverse team working on this campaign, that would have been spotted? Because I do. A team with a wider range of perspectives might have seen the potential harm in linking a protest for justice with a soft drink. They would’ve recognised the tone-deafness of the ad before it hit the public eye.

And here’s the thing, this wasn’t just about a poorly executed campaign. It was about alienating the very audience Pepsi was trying to connect with. When you fail to incorporate diverse voices and experiences, you risk creating campaigns – or products, or policies – that don’t resonate with the people who matter most to your brand.

Bottom line

Cutting DEI is a business mistake that leaves you vulnerable to missed opportunities, alienates the talent and consumers you need, and risks your long-term success. So, while it may seem like a good idea to follow suit with what's happening in America at the moment, I strongly advise against it. Ignoring DEI puts your future on the line.