According to Bloomberg Law, the Big Four accounting firms are facing a deep divide over diversity, equity and inclusion (DEI) initiatives as political and legal pressures mount. While Deloitte and KPMG are scaling back their DEI programs due to executive orders and scrutiny over federal contracts, Ernst & Young (EY) and PwC continue to maintain their diversity commitments for now. 

KPMG and Deloitte, both significant government contractors, have begun dismantling DEI efforts to comply with President Donald Trump’s executive order targeting diversity initiatives.

Deloitte, the largest federal contractor among the Big Four, has stopped tracking progress on diversity goals, while KPMG has removed its DEI webpage and replaced it with a general careers page. Both firms have backed away from “metric-based aspirations” that included race and gender benchmarks, Bloomberg Law reported. 

The rollback comes after years of investments aimed at diversifying the accounting profession. Deloitte had pledged $75 million to improved diversity among accounting hires back in June 2021, including a $30 million fund for Black and Hispanic students pursuing CPA qualifications. KPMG had similar diversity recruitment efforts under its now-retired “Accelerate 2025” strategy. 

Meanwhile, EY and PwC have not publicly retreated from their DEI programs. EY continues to promote diversity on its website and social media, including celebrating Black History Month. PwC, which does not have a federal contracting business, shifted its focus from diversity to inclusion after facing legal challenges over a DEI-focused internship program, Bloomberg Law said.