Paramount Scaling Back DEI Policies

Paramount Global announced Wednesday it was scaling back its Diversity, Equity, and Inclusion (DEI) policies to align with directives from the Trump administration, a move that coincides with its ongoing efforts to finalize an $8 billion merger with Skydance Media. This policy shift was detailed in an internal memo from Paramount’s co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins, sent to employees on the same day the company released its Q4 2024 earnings.

The decision reflects a broader trend among U.S. companies adjusting to new federal mandates following President Trump’s inauguration on January 20, 2025. 

One of Trump’s first executive orders, titled “Ending Radical And Wasteful Government DEI Programs And Preferencing,” aimed to dismantle DEI initiatives across government and private sectors. Paramount cited this order, alongside a Supreme Court decision and federal mandates, as necessitating changes in how it approaches inclusion. Specifically, the company eliminated aspirational hiring goals tied to race, ethnicity, sex, or gender, ceased collecting such data from most U.S. job applicants (except where legally required).

The rollback occurs as Paramount navigates a critical juncture with its pending Skydance merger, which requires approval from the Federal Communications Commission (FCC). 

The FCC, now led by Trump appointee Brendan Carr, has emerged as a potential hurdle. Carr has been vocal about scrutinizing media companies’ DEI practices and has revived investigations, such as one into CBS (a Paramount subsidiary) over alleged news distortion. The merger, expected to close in the first half of 2025, involves transferring broadcast licenses, giving the FCC leverage to impose conditions or delays. Paramount’s leadership appears to be adjusting its policies partly to mitigate regulatory risks, especially as the company also faces a $20 billion lawsuit from Trump against CBS News over a “60 Minutes” interview edit, adding further pressure to align with administration priorities.

Despite the DEI rollback, Paramount’s memo emphasized a commitment to inclusivity as a core value, suggesting it will seek alternative ways to attract diverse talent without formal quotas or metrics.