In a significant policy reversal, technology giant Microsoft has quietly removed diversity and inclusion as mandatory core priorities from its company-wide employee performance reviews. This move represents a major step back from the public commitments the company made in the wake of the global George Floyd protests in 2020.
What Changed in Microsoft's Performance Reviews?
According to reports from The Verge and Game File, the changes were implemented last month through Microsoft's internal Connect system. The update eliminated mandatory questions that required every employee to detail their specific contributions toward fostering a more diverse and inclusive workplace.
Previously, workers were obligated to answer the question: "What impact did your actions have in contributing to a more diverse and inclusive Microsoft?" Similar mandatory queries related to security improvements were also removed. The company announced these alterations not through a mass email, but via a post on its internal Viva Engage platform, framing the shift as a "simplification" of the review process where core priorities are now simply termed 'goals'.
A Decade of Transparency Comes to an End
This internal policy shift coincides with another major change in Microsoft's public-facing diversity efforts. The company has confirmed it will not publish its annual diversity and inclusion report this year, breaking a streak of public disclosures that lasted over a decade.
Frank Shaw, Microsoft's Chief Communications Officer, defended the decision. He stated the company has "evolved beyond" traditional reporting formats to use more dynamic methods like stories and videos that show inclusion in action. Internally, Human Resources documentation has also been revised, now focusing solely on the term "inclusion" instead of "diversity and inclusion." The new guidance asserts that inclusion should be embedded in how employees work, interact, and lead.
Internal Reactions and the Broader Political Climate
The policy change follows a year of evolving corporate attitudes toward Diversity, Equity, and Inclusion (DEI) initiatives. It comes after former US President Donald Trump's executive order earlier in 2024 targeting corporate DEI programs. Furthermore, in July 2024, Microsoft laid off an internal DEI team, citing changing business needs. The team's leader noted in an internal email that the systemic change work associated with such programs was "no longer business critical or smart as they were in 2020."
Employee reactions within Microsoft have been mixed, revealing internal tensions. Some workers pointed to CEO Satya Nadella's controversial decision to feature Elon Musk at the Microsoft Build conference in May 2024 as a signal of shifting priorities. Musk, at the time, was actively criticising and dismantling government DEI programs. This appearance reportedly angered members of Microsoft's GLEAM group, which represents LGBTQIA+ employees and allies.
Despite the visible changes, Microsoft spokesperson Jeff Jones maintained that the company's commitments remain unchanged. "Our D&I commitments remain unchanged. Our focus on diversity and inclusion is unwavering," Jones insisted. However, the removal of these metrics from performance reviews and the end of annual public reporting mark a clear strategic pivot for one of the world's most influential tech companies.
