How Tech Layoffs Will Impact Black Americans: McKinsey’s Shelley Stewart

McKinsey senior partner Shelley Stewart worries that an economic downturn may impact diversity, equity and inclusion efforts. He tells CNBC’s Sharon Epperson how companies can mitigate high attrition rates in frontline jobs and reflects on how DEI pledges have evolved since 2020.

Since December 2020, the amount of money that companies publicly committed to racial equity has increased from $66 billion to $340 billion. However, “it has been challenging to actually meet these ambitious goals to deploy this capital,” Stewart said.

Stewart told CNBC that Black Americans have historically been disproportionately affected during economic downturns.

Because Black workers are underrepresented in the tech industry, he said, they may not be hit disproportionately in that sector. Nonetheless, he stressed the importance of increasing the number of Black workers in tech, urging businesses to continue “thinking about ways to increase representation as we think about emerging from this thing on the other side.”

Stewart encourages companies to continue their DEI efforts by working with diverse suppliers, saying partnering with diverse businesses is “the biggest lever that corporations have to directly impact society other than wages.”

“Inclusive growth is better for companies, better for society, better for our global economy and our domestic economy,” he said. “Folks that stick to that, I think, will emerge on the other side stronger.”

Watch the video to learn more about the commitments that companies have made to address inequality and the impact that an economic downturn could have on these DEI pledges.

Chapters:
0:49 - Jobs
3:36 - The pledges
6:19 - Partnerships

Produced by: Macklin Fishman
Reported by: Sharon Epperson
Supervising Producer: Lindsey Jacobson

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How Tech Layoffs Will Impact Black Americans: McKinsey’s Shelley Stewart