Verizon Communications on Friday said that it’s ending its diversity, equity and inclusion (DEI) programs amid a probe by the Trump administration into those practices, as the telecom giant seeks federal approval for an acquisition.
Federal Communications Commission (FCC) Chair Brendan Carr criticized Verizon in February for its promotion of DEI programs, saying it could factor into the review of Verizon’s planned acquisition of Frontier Communications for $20 billion, including debt.
Verizon said in a letter to Carr that was reviewed by Reuters that it’s removing its “Diversity and Inclusion” website and removing references to DEI in employee training programs – as well as making changes to its hiring, career development, supplier diversity and corporate sponsorship practices.
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The company plans to end workforce diversity goals and will also drop a component of its management compensation plan that included a goal to boost the representation of women and minorities in Verizon’s U.S. workforce.
“Verizon recognizes that some DEI policies and practices could be associated with discrimination,” Verizon Chief Legal Officer Vandana Venkatesh said in the letter, adding that the changes would immediately take effect.
Carr posted the letter on social media and said that Verizon’s moves are a “good step forward for equal opportunity, nondiscrimination, and the public interest.”
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Verizon is seeking approval from the FCC for its acquisition of Frontier. The deal was announced last September as an all-cash transaction valued at $20 billion.
The telecom provider said the deal will increase its scale by 2.2 million fiber subscribers, broadening Verizon’s reach to 25 million premises in 31 states plus Washington, D.C.
Verizon CEO Hans Vestberg said at the time of the announcement that the acquisition of Frontier was a “strategic fit” that would help the company be more competitive throughout the U.S.
Frontier CEO Nick Jeffery said the deal “delivers a substantial cash premium to Frontier’s shareholders, while creating exciting new opportunities for our employees and expanding access to reliable connectivity for more Americans.”
Reuters contributed to this report.
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