The Cost of Reversing DEI

What UK Brands Must Learn from the U.S. Backlash

As high-profile U.S. brands like Target and Bud Light scale back their public-facing Diversity, Equity, and Inclusion (DEI) efforts, particularly around LGBTQIA+ visibility, the fallout has been swift: plummeting share prices, PR crises, and a collapse in trust among progressive consumers and employees.

But this isn't just an American problem.

In the UK, the climate is shifting, too. Trans rights are becoming increasingly politicised, and media narratives are becoming more polarised. Some brands, feeling the pressure, are growing quieter on inclusion or discreetly cutting DEI budgets.

As someone working in content and social strategy—qualified in Diversity, Equity and inclusion (DEI) and LGBTQIA+ Awareness—I embed DEI principles into social listening, campaign development, influencer activity, and brand comms every day. I've seen firsthand how quickly trust erodes when inclusion is treated as a seasonal campaign or a reactive gesture.

This is a pivotal moment for reflection. The decisions businesses make now will shape long-term trust and impact.

So the key question is: will UK brands repeat America’s mistake, or learn from it?

What the U.S. Told Us: Brand Retreat = Brand Risk

Here are four cautionary tales that show what happens when inclusion is mishandled:

🛒 Target

What happened: Initially pulled or repositioned Pride merchandise after conservative backlash in 2023. In early 2025, the company scaled back key DEI initiatives, including ending a multi-year program supporting Black-owned businesses and careers.

Fallout: Triggered backlash from both conservatives (for "pushing Pride") and progressives (for "caving in"). Boycotts reignited in 2025, including a 40-day protest campaign. Share price has fallen approximately 43% from its 52-week high, wiping out over $12.4 billion in market value. RepTrak brand trust scores dropped notably, from 73.8 in late 2024 to 66.3 by early 2025.

Impact: Sustained erosion of trust with LGBTQIA+ communities, Gen Z consumers, and DEI-minded employees. The company now faces shareholder lawsuits and reputational damage, showing how retreating from inclusion efforts can carry long-term brand and financial consequences.

🍺 Bud Light

• What happened: Briefly partnered with trans influencer Dylan Mulvaney, then quickly distanced themselves.

• Fallout: Lost over $27 billion in market cap. Alienated both allies and critics.

• Impact: A textbook case of trying to "neutralise" inclusion and pleasing no one.

  
  

☕ Starbucks

• What happened: Scaled back public DEI messaging amid unionisation efforts.

• Fallout: Criticism from employees and Gen Z audiences. Internal culture tensions. Drop in DEI trust scores.

• Impact: Mixed signals damaged both internal morale and brand perception.

  
  

🎬 Disney

• What happened: Opposed Florida's "Don't Say Gay" bill, then softened public DEI positioning.

• Fallout: Employee frustration and consumer confusion.

• Impact: A prime example of the dangers of trying to appease everyone—and satisfying no one.

  
  

Why the UK Should Be Paying Attention

The UK is not far behind. We've already seen:

• A rise in anti-trans rhetoric, fuelled by political agendas and divisive media coverage.

• Fewer Pride partnerships, with some brands watering down LGBTQIA+ messaging to avoid controversy.

• Quiet DEI budget cuts in agencies and corporates, often framed as "efficiency."

These are the same early warning signs we saw in the U.S. before the backlash hit. And once you scale back, rebuilding trust is ten times harder.

Brand, Content & Social: Where UK Strategy Must Hold the Line

With my background in DEI training and social strategy, I help companies build inclusive content and social ecosystems—not just performative one-offs.

Key takeaways for UK brands:

• Be consistent. If you can't back your values in October, don't post about them in June. Performative allyship won't survive scrutiny.

• Plan for backlash. Have a clear internal comms and social response strategy.

• Know your audience. Gen Z and millennial consumers expect brands to reflect their values. They don't just buy products—they buy alignment.

What's the Real Impact of Scaling Back DEI?

Market Confidence

Investors are watching Environmental, Social, and Governance (ESG) commitments more closely than ever. Pulling back on DEI signals reactive leadership and raises red flags about long-term brand stability.

Brand Sentiment

As someone regularly analysing brand and social sentiment through social listening, I've seen what happens when DEI is handled inconsistently:

• Spikes in negative engagement and comment moderation

• Increased call-outs from creators and consumers

• Fatigue and cynicism from audiences tired of empty gestures

  
  

Employer Branding

Inclusion is no longer a "nice to have":

• Gen Z job seekers actively avoid companies without visible DEI commitments.

• Employee-led content, reviews, and social posts often highlight internal misalignment.

• Quiet dismantling of DEI leads to retention risks, especially for underrepresented groups.

  
  

  And when a brand launches an inclusive campaign without internal alignment, it's exposed almost instantly through LinkedIn, Glassdoor, or social media backlash.

  
  

Conclusion: This Is a Defining Moment for UK Brands

The DEI rollbacks in the U.S. show us what happens when inclusion is treated as a trend rather than a value. The backlash isn't theoretical; it's commercial, cultural, and reputational.

UK brands still have time to choose differently.

It's not about being political. It's about being principled.