Microsoft Removes Diversity & Inclusion from Employee Reviews: What's Behind the Shift? (2026)

Microsoft's Quiet Shift: Removing Diversity and Inclusion from Performance Reviews

Microsoft has made a significant change to its employee performance reviews, removing diversity and inclusion as mandatory components. This decision marks a departure from the company's 2020 commitments and has sparked mixed reactions among employees. The Verge and Game File report that these changes were implemented last month through Microsoft's internal Connect system, eliminating the need for employees to detail their contributions to diversity and security improvements.

The company's annual diversity report, a public disclosure for over a decade, will also be absent this year, according to Wired. Microsoft's Chief Communications Officer, Frank Shaw, explains this shift as a move towards more dynamic and accessible formats, such as stories and videos showcasing inclusion in action. However, internal HR documentation now focuses solely on 'inclusion', emphasizing its role in daily work, interactions, and leadership.

This policy change comes amidst a broader context. President Donald Trump's executive order targeting corporate DEI initiatives earlier this year and Microsoft's recent layoffs of an internal DEI team due to 'changing business needs' have further fueled the debate. The team leader's internal email highlighted the evolving nature of DEI work, suggesting it is no longer as critical as it was in 2020.

Employee responses have been diverse, with some expressing surprise and others seeing it as a logical progression. The decision to feature Elon Musk at Microsoft's Build conference, despite his stance against DEI programs, has been particularly controversial. This incident has raised concerns among Microsoft's LGBTQIA+ community, as reported by Business Insider.

Despite the changes, Microsoft's spokesperson, Jeff Jones, reassures that their commitment to diversity and inclusion remains strong. The company's evolving approach to DEI, however, continues to spark discussions and debates within the organization and beyond.

Microsoft Removes Diversity & Inclusion from Employee Reviews: What's Behind the Shift? (2026)
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