Paramount is eliminating diversity-related staffing goals and ceasing the collection of employee demographic data, according to a Feb. 26 internal memo from co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins. Despite this decision, the company stated it remains committed to attracting talent from diverse backgrounds. However, the move has sparked internal criticism, leading employees to issue an open letter expressing their disappointment.
In their memo, Paramount’s leadership cited executive orders from former President Donald Trump directing agencies to scrutinize private employers’ DEI programs. The co-CEOs argued that these policies necessitated compliance-driven changes. Additionally, the company is removing a qualitative DEI metric from its short-term incentive plan. Previously, 5% of funding was tied to DEI goals, but this will now be redirected to a Workforce Culture and Development initiative aimed at fostering an inclusive, high-performance culture.
Employees swiftly criticized the decision, with reports first surfacing in The New York Times. Workers condemned Paramount’s actions as contradictory, arguing that the company benefits from diverse communities while simultaneously undermining efforts to support them. Their letter accused Paramount of erasing and excluding the very groups that contribute to its success.
Beyond philosophical disagreements, employees also raised concerns about corporate compliance choices. They argued that Paramount, as a private company, is not bound by Trump’s executive orders and should not “preemptively yield” to government policies that do not legally apply. The letter framed Paramount’s decision as a political move rather than a legal necessity.
While DEI rollbacks have been occurring for some time, Trump’s executive orders have likely intensified uncertainty among corporations. However, a recent federal court ruling suggests these directives may not have enforceable consequences for private businesses. In late February, U.S. District Court Judge Adam Abelson stated that Trump’s executive order could violate constitutional protections, including the First and Fifth Amendments and the separation of powers clause.
Further, 16 state attorneys general have pushed back against the order, arguing that it misrepresents DEI policies. Massachusetts Attorney General Andrea Joy Campbell and Illinois Attorney General Kwame Raoul stated that the executive order conflates unlawful hiring practices with lawful diversity initiatives. They emphasized that the federal government does not have the authority to ban DEI policies in private companies.
Paramount employees have also raised concerns about broader workplace issues, particularly recent layoffs. At the end of 2024, 38 members of the Motion Picture Editors Guild were let go without warning, which some employees claimed disproportionately affected marginalized workers. In their open letter, employees linked these layoffs to the company’s shifting priorities, accusing leadership of sacrificing corporate values for short-term financial gain.
Ultimately, Paramount’s decision to scale back DEI initiatives has ignited controversy, highlighting tensions between corporate strategy, political influence, and employee expectations.
