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Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

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Donald Trump targets DEI in the military as Peter Hegseth sends a warning note to resistant workers

Brit Morse
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Brit Morse
Brit Morse
Leadership Reporter
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Brit Morse
By
Brit Morse
Brit Morse
Leadership Reporter
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January 28, 2025, 8:36 AM ET
Pete Hegseth speaks during a Senate Armed Services confirmation hearing
Pete Hegseth came out strongly against diversity and inclusion initiatives during his first week as secretary of defense.Chen Mengtong—China News Service/VCG via Getty Images
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Pete Hegseth was narrowly confirmed to lead the Department of Defense under the new Trump administration last week despite allegations of sexual assault and drinking on the job. He has denied the allegations against him, and landed the role by the skin of his teeth after Vice President JD Vance broke a 50-50 vote in the Senate and confirmed his nomination. 

In his first week, Hegseth didn’t wait long to share his thoughts on diversity, equity, and inclusion. The newly appointed secretary of defense described his stance on the hot-button topic in a social media post on Sunday, sharing a photo of official letterhead with the phrase: “DoD ≠ DEI*.” The note added that there would be “​​no exceptions, name-changes or delays,” and that “those who do not comply will no longer work here.” It was reportedly distributed to Pentagon employees over the weekend. The Department of Defense did not respond to Fortune’s request for additional comment.  

President Trump has already signed one executive order that is intended to dismantle DEI programs at federal agencies. But he followed that up with another round of executive orders late Monday night, one of which was specifically targeted at DEI in the armed forces. 

“I ordered the end to all of the lawless diversity, equity and inclusion nonsense policies across the government and all across the private sector and the military,” Mr. Trump said at the House GOP retreat Monday night. “We’re getting it out and we’ve gotten it out pretty much. We did that in one week, and it wasn’t that easy, but everybody wanted it.”

The new order includes cutting DEI offices within the Department of Defense and the Department of Homeland Security. The DoD has also been tasked with conducting an internal review of DEI initiatives, which will culminate in a report to the Trump administration. The DoD and Armed Forces are also prohibited from promoting the idea that “America’s founding documents are racist or sexist,” or promoting or advancing “gender ideology” as defined by the Trump administration. 

The new executive order will likely reshape the military in various ways over the next few months as the secretary of defense and the secretary of homeland security continue to issue detailed guidance to agencies on the new action. And it’s just the latest move—but likely not the last—that we’ll see from the Trump administration on the subject. 

Brit Morse
brit.morse@fortune.com

Around the Table

A round-up of the most important HR headlines.

Elon Musk’s role in the newly established Department of Government Efficiency (DOGE) remains murky, and it raises questions about whether Tesla’s CEO will have to comply with government ethics rules. Barron’s

A new workplace hierarchy around RTO is letting some top performers live the remote lifestyle while other, more junior employees are being forced back into the office. Wall Street Journal

Trump’s latest orders around birthright citizenship are leaving workers in the U.S. on H-1B visas, concerned for the future of their children. Bloomberg

Watercooler

Everything you need to know from Fortune.

Re-shaping the C-suite. While the long-term impact of Trump’s anti-DEI stance remains to be seen, abandoning decades-old inclusivity initiatives risks limiting diversity in the current leadership talent pipeline. —Lily Mae Lazarus

Ghosting bosses. After enduring endless rounds of interviews, some Gen Z job seekers are celebrating finally getting the role they applied for by blocking their new bosses’ numbers and not showing up for work. —Orianna Rosa Royle

Recruiting top executives. Here’s an inside look at the rigorous process Blackstone uses to find the right executives for their high-profile portfolio companies. —Ruth Umoh

This is the web version of Fortune CHRO, a newsletter focusing on helping HR executives navigate the needs of the workplace. Sign up to get it delivered free to your inbox.
About the Author
Brit Morse
By Brit MorseLeadership Reporter
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Brit Morse is a former Leadership reporter at Fortune, covering workplace trends and the C-suite. She also writes CHRO Daily, Fortune’s flagship newsletter for HR professionals and corporate leaders.

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