Walmart (WMT) is scaling back its Diversity, Equity, and Inclusion (DEI) programs following pressure from conservative activists. The retailer announced it would discontinue using the term DEI in company communications, cease racial equity staff training, and stop allowing third-party sellers to offer LGBTQ-related items on its website.

Bloomberg News reporter Simone Foxman provides insights into this broader corporate trend, noting that while several companies have reduced DEI initiatives, these actions have not significantly impacted stock prices. However, she highlights that investors have been sensitive to companies' handling of partnerships with LGBTQ influencers and related merchandise.

"I think the real question as we move forward is do these announcements and the curtailing of these policies change the way these companies are able to retain talent," Foxman tells Yahoo Finance. She emphasizes the potential long-term implications, particularly considering Generation Z's reputation as a "more open" and diverse community.

"How much do these changes create happy environments that employees simply want to stay?" Foxman questions.

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This post was written by Angel Smith