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Dismantling DEI may help T-Mobile now—but alienate Gen Z

The news: T-Mobile has announced a full dismantling of its diversity, equity, and inclusion (DEI) programs as it seeks federal regulatory approval for two high-stakes deals.

  • The company outlined its decision in a letter to the Federal Communications Commission (FCC), stating that it would eliminate DEI “not just in name, but in substance,” and would be removing all related language from its website, internal training, and organizational structure.
  • This reversal marks a sharp pivot in T-Mobile’s public commitments to workplace equity.
  • FCC Chair Brendan Carr has signaled that regulatory approval could be contingent on companies walking back such policies. He praised T-Mobile’s move as “another good step forward for equal opportunity, nondiscrimination, and the public interest.”

Zooming out: This follows a broader wave of DEI pullbacks across corporate America, with other major companies like Amazon, Google, and Target also scaling back their initiatives. Others, like Costco, have doubled down on previous commitments, hoping to capitalize on staying the course.

Why it matters: T-Mobile’s rollback of DEI initiatives may help it gain short-term regulatory approval under current political conditions. However, the move risks long-term reputational damage and alienation of younger consumers.

Still, nearly half of respondents across all age groups (49%) said they had not taken action due to a brand's DEI stance, indicating that the issue can be polarizing but not universally motivating.

Our take: T-Mobile’s DEI rollback is emblematic of a broader political and corporate recalibration underway in 2025. Marketers must now balance the reputational risks of perceived insincerity or inconsistency with the growing regulatory and political scrutiny facing DEI initiatives. Consumers, especially younger generations, remain alert to how authentically brands uphold their commitments—making consistency, transparency, and sincerity more critical than ever.

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