Rev. Al Sharpton Urges PepsiCo to Reinstate DEI Commitments Following Staff Cuts
Civil rights leader Rev. Al Sharpton is calling on PepsiCo to reaffirm its commitment to diversity, equity, and inclusion (DEI) after reports surfaced of significant reductions in staff and funding for its internal DEI initiatives. This appeal comes amid growing concerns over corporate pullback from racial equity commitments made in 2020, following widespread protests over racial injustice.
Sharpton addressed a letter directly to PepsiCo CEO Ramon Laguarta, criticizing the company for rolling back DEI programming and questioning whether it has upheld pledges to invest in racial equity. PepsiCo had pledged more than $400 million in 2020 toward increasing internal diversity, expanding supplier diversity, and supporting Black businesses and communities over five years. Sharpton is now asking the company to release a progress report and reaffirm its public commitment to these goals.
PepsiCo responded by stating it has made “steady progress” in advancing workplace equity and doubling its spending with Black-owned suppliers. However, it did not directly address specific allegations in the letter about layoffs and budget cuts within DEI-focused teams.
This pressure on PepsiCo underscores broader industry dynamics, as FMCG and other consumer-facing sectors face scrutiny for scaling back racial equity programs. The current climate includes increased legal challenges to race-based initiatives, a cooling in consumer and investor support, and political opposition, particularly following the Supreme Court’s 2023 ruling striking down affirmative action in college admissions.
Sharpton’s remarks could have implications beyond PepsiCo, signaling that corporations may face renewed advocacy pressure to maintain their DEI strategies, especially as many brands originally made bold public commitments in response to social unrest in recent years. Industry analysts are watching closely, as such moves affect brand reputation, employee engagement, and consumer trust — all critical factors for long-term growth in the FMCG sector.
The National Action Network, led by Sharpton, indicated that failure to address these concerns could lead to protests and calls for broader public accountability. For FMCG companies, the message is clear: stakeholders are expecting transparency and follow-through on diversity strategies that influence both internal culture and consumer perception.