PepsiCo Modifies DEI Strategy in Light of Increasing Corporate Change

PepsiCo’s DEI strategy is being redesigned, with an emphasis on inclusion and leadership development instead of workforce representation targets.

As US President Donald Trump works to destroy diversity, equity, and inclusion (DEI) programs in the federal government and private sector, PepsiCo is reevaluating its DEI programs, joining an increasing number of large US corporations in doing so.

The manufacturer of Frito-Lay and 7Up plans to remove workforce representation targets linked to DEI and move its senior DEI officer into a more general position centered on associate engagement and leadership development, per a company memo distributed to staff members.

Additionally, the officer will continue to work on PepsiCo’s “A Space to Be You” 2021 project.

According to Ramon Laguarta, CEO of PepsiCo, the corporation is implementing the adjustments as it enters a new stage of its inclusion initiatives.

“We will implement a new ‘Inclusion for Growth’ strategy as 2025 signifies the conclusion of our five-year plan,” Laguarta wrote in the memo.

Trump, who has urged private-sector businesses to stop what he refers to as “illegal DEI discrimination and preferences,” is the reason behind the change.

In reaction to the political environment, a number of companies have already reduced or reexamined their DEI practices, including Alphabet-owned Google and Target.

Additionally, Trump has directed government agencies to discontinue DEI programs and issued a warning that universities and other academic institutions may lose funding if they persist in doing so.

In an effort to give all small businesses more chances to collaborate with the company, PepsiCo is growing its supplier base in addition to reorganizing its DEI framework.

The memo also stated that the corporation would no longer participate in surveys that monitor the demographics of its staff by a single group.