Great Awakening: How Canada’s corporate retreat from wokeness signals a cultural shift

By willowt // 2025-01-29

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Major corporations including Walmart, Starbucks and Ford are abandoning Diversity, Equity and Inclusion (DEI) initiatives in Canada, reflecting a broader rejection of "woke" ideology.
The corporate retreat from DEI programs is driven by a growing awareness that these initiatives often exacerbate division rather than foster unity, as well as legal and cultural challenges such as lawsuits and the U.S. Supreme Court’s 2023 decision on affirmative action.
Research indicates that DEI training can lead to increased workplace tensions, racial suspicion and hostility, rather than promoting inclusion and unity.
Canadians are increasingly uncomfortable with woke ideology, with polls showing that a majority oppose racial preferences in schools and other identity-based policies.
The retreat from DEI marks a pivotal moment for Canada, signaling a shift towards promoting dignity, equality and solidarity, and away from divisive identity politics.

As 2025 dawns, a seismic shift is underway in Canada’s corporate and cultural landscape. Major corporations, including Walmart, Starbucks and Ford Motor Company, are abandoning Diversity, Equity and Inclusion (DEI) initiatives, signaling a broader rejection of “woke” ideology. This retreat marks a turning point in the battle against identity politics, as companies and institutions grapple with the unintended consequences of DEI programs. For conservatives, this moment is not just a victory but a vindication of long-held skepticism about the divisive nature of these policies. The movement away from DEI is not merely a corporate trend; it reflects a growing awareness among Canadians that these initiatives often exacerbate division rather than foster unity. As Christie Pritchard writes in Druthers, “It now seems major corporations in Canada have figured that out. And as we welcome the arrival of 2025, it seems pretty clear that ‘woke’ ideology is on its way out.”

Corporate exodus: Walmart leads the charge

Walmart, the world’s largest private employer, has taken the most significant step in dismantling its DEI framework. The company announced sweeping changes, including erasing DEI-related terminology, ending DEI training programs and shifting away from prioritizing underrepresented groups in hiring and supplier selection. Walmart’s statement emphasized a desire to “foster a sense of belonging” and “open doors to opportunities for all,” signaling a pivot toward a more inclusive, merit-based approach. But Walmart is not alone. Starbucks, Ford, Boeing and other major corporations have followed suit, rolling back DEI initiatives that were once central to their corporate identities. This shift is particularly striking given the billions of dollars invested in DEI programs globally. A 2022 report by ReportLinker projected DEI spending to reach $17.2 billion by 2027, but that projection now seems increasingly unlikely. The corporate retreat from DEI is not just a reaction to public sentiment; it is also a response to legal and cultural challenges. The U.S. Supreme Court’s 2023 decision to strike down affirmative action in college admissions has emboldened critics of race and gender-based programs. Dozens of lawsuits have been filed against employers, targeting diversity hiring practices and mentorship programs that prioritize specific demographics.

DEI’s unintended consequences

Critics of DEI initiatives have long argued that these programs foster division rather than inclusion. Recent research supports this claim. A 2024 study by Ontario academic David Haskell found that DEI training often exacerbates workplace tensions, creating more hostility rather than reducing it. Similarly, a 2021 article in the Annual Review of Psychology expressed disappointment over the lack of evidence supporting the effectiveness of diversity training. Perhaps the most groundbreaking research comes from the Network Contagion Research Institute (NCRI) and Rutgers University’s Social Perception Lab. Their study found that exposure to DEI practices “engendered a hostile attribution bias … and heightened racial suspicion … amplifying perceptions of prejudicial hostility where none was present.” For example, participants in the study were presented with a race-neutral scenario about a student applying to an elite university. Despite no evidence of discrimination, those exposed to DEI materials were more likely to perceive bias and demand punitive actions, such as suspending the admission officer or requiring additional DEI training. In one shocking scenario, DEI training material made participants more willing to agree with Hitler’s quotes when the word “Jew” was replaced with “Brahmin.” These findings are particularly significant given that 40% of Canadian and 52% of American workers undergo some form of DEI training. The research underscores the dangers of policies that prioritize identity over merit and foster resentment rather than unity.

Canada’s growing discontent with wokeness

The corporate retreat from DEI reflects a broader cultural shift in Canada. Polls show that Canadians are increasingly uncomfortable with woke ideology, particularly its emphasis on identity politics and its divisive rhetoric. As Peter Copeland writes in The Hub, “Most Canadians don’t support the ideologies underlying these phenomena. Like Americans and Brits, they oppose racial preferences in schools, the prioritization of gender self-identification over biological sex, and gender reassignment surgery for minors.” This discontent is not limited to corporate policies. It extends to education, healthcare and public discourse. Canadians are questioning the wisdom of policies that prioritize equity over equality, and they are increasingly skeptical of the elites who promote these ideas. As Copeland notes, “A cultural elite has taken a ‘long march’ through institutions, promoting a vision of ‘equity.’ Marxist class struggle has shifted to the cultural sphere.” Yet, the tide is turning. Canadians are beginning to push back against the excesses of woke ideology, demanding a return to common sense and shared values. As Copeland argues, “We need to propose an alternative to wokeness in public discourse. Instead of ‘diversity, equity and inclusion,’ we should promote ‘dignity, equality and solidarity,’ or ‘merit, equality and fairness.’”

New path forward

The retreat from DEI and woke ideology marks a pivotal moment in Canada’s cultural and political landscape. It is a moment of reckoning for the elites who have promoted these divisive policies and a moment of opportunity for those who seek to restore unity and common sense. As we move into 2025, it is clear that the era of wokeness is waning. Canadians are demanding a new approach — one that prioritizes merit, equality and shared values over identity politics and division. The challenge now is to build a society that truly fosters belonging and opportunity for all, without resorting to the divisive tactics of the past. In the words of Christie Pritchard, “True progress will come by uniting us all as humans rather than dividing us by our demographics.” The end of wokeness is not just a victory for conservatives; it is a victory for all Canadians who value unity, fairness and common sense. Sources include: TheExpose.com Reddit.com MLI.ca