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Feb 20, 2026 - Corporate Board Diversity Sliding Back to Pre-DEI Levels

• Corporate board diversity is quietly sliding back toward pre-DEI norms as political and investor pressure eases. A Wall Street Journal analysis of S&P 500 board data from PeopleReturn shows companies are adding women and minority directors no faster than they did a decade ago, before diversity policies became widespread, and well below the post-2020 peak. Nearly three-quarters of last year’s new directors were men, and about four in five were white - roughly in line with 2016 levels. Companies have been dropping formal diversity policies, while influential adopters have backed off: banks such as Goldman Sachs scrapped board diversity requirements, major investors like BlackRock have relaxed targets, and proxy advisers no longer factor demographics into voting guidance. Court rulings striking down board diversity rules tied to Nasdaq and California have reinforced the pullback.
• The US lost about 1.2 million jobs in 2025, up roughly 58% from 2024, according to career services company Challenger, Gray & Christmas. In December alone, employers announced about 35,500 cuts, capping the highest annual total since 2020. The largest reductions came from the federal government (~308,000 cuts), followed by technology (~154,000), retail (~92,000), and non-profits (~18,000). Workforce reductions in technology are being driven largely by AI adoption, accounting for almost 55,000 cuts last year, and contributing to a 36% increase in sector layoffs compared with 2024. Government spending cuts not only affect federal employees, but Department of Government Efficiency reductions to grants and research continue to ripple into the nonprofit sector. Rising tariffs also remain a significant factor in the ongoing wave of workforce reductions.

• The traditional consulting giants - McKinsey, Boston Consulting Group (BCG), and Deloitte - are increasingly facing competition from small, AI‑driven boutique firms that leverage advanced tools to deliver highly specialized and efficient services at lower costs. These niche consultancies, often founded by alumni of larger firms, concentrate on areas such as pricing strategy, cost reduction, operational efficiency, and AI‑enhanced analytics, directly challenging the dominance of the established players. By offering more targeted and technology-enabled solutions, these boutiques are making high-level consulting more accessible to mid-market clients who may have previously been priced out of traditional engagements. Larger consulting firms are responding by integrating AI into their core service offerings, automating routine tasks, and rethinking the traditional pyramid staffing model. Some are freezing entry-level salaries or reducing back-office roles while simultaneously investing in technology and upskilling employees, reflecting a broader industry-wide shift in how consulting services are structured, delivered, and valued.
• Companies are significantly reducing middle-management layers, resulting in individual supervisors managing roughly three times as many employees as they did in 2017, according to consulting firm Gartner. This increase in span of control leaves managers with far less time for one-on-one coaching, mentoring, and career guidance. The trend has accelerated since the pandemic, with US public company middle-management headcounts declining by approximately 6% from their 2021 peak, and top executive positions dropping nearly 5%, per Live Data Technologies. These cuts create fewer promotion opportunities and less clarity about career paths for employees, making feedback and professional development harder to access. The resulting structure shifts more responsibility onto remaining managers while limiting direct oversight and support for staff. Overall, the thinning management layers are reshaping workplace dynamics, forcing both employees and leaders to adapt to heavier workloads, broader spans of control, and altered expectations for career advancement and mentorship.