Verizon Communications announced on Friday that it will be discontinuing its diversity, equity, and inclusion (DEI) initiatives, coinciding with an investigation by the Trump administration regarding these practices, as the telecommunications leader seeks federal approval for its acquisition plans.
Brendan Carr, Chair of the Federal Communications Commission (FCC), voiced his concerns in February about Verizon’s DEI efforts, suggesting that they could influence the evaluation of the company’s proposed $20 billion acquisition of Frontier Communications, inclusive of debt.
In a letter to Carr that was obtained by Reuters, Verizon indicated its plans to eliminate its “Diversity and Inclusion” website and cease references to DEI within employee training initiatives. The company will also revise its practices regarding hiring, career advancement, supplier diversity, and corporate sponsorships.
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The telecommunications firm will terminate its diversity hiring goals and will remove a performance metric from management compensation structures aimed at enhancing the representation of women and minorities within its workforce.
Verizon’s Chief Legal Officer, Vandana Venkatesh, stated in the letter that the company acknowledges that certain DEI policies may be perceived as discriminatory, and the changes would be effective immediately.
Following the release of the letter, Chairman Carr took to social media to express approval of Verizon’s decision, labeling it a positive advancement for equal opportunity, non-discrimination, and public interest.
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In pursuit of approval for its acquisition of Frontier, Verizon anticipates a thorough review by the FCC. The deal, initially announced last September, is positioned as an all-cash agreement valued at $20 billion.
The acquisition aims to expand Verizon’s scale, adding an estimated 2.2 million fiber subscribers and extending its service reach to 25 million locations across 31 states and Washington, D.C.
Verizon CEO Hans Vestberg referred to the Frontier acquisition as a “strategic fit” that would bolster the company’s competitive stance in the U.S. telecommunications market.
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Nick Jeffery, CEO of Frontier, remarked that the merger provides a significant cash benefit to Frontier’s shareholders while opening up promising avenues for employees and expanding access to dependable connectivity for many more Americans.
Reuters contributed to this report.
