Verizon Communications announced on Friday that it has ceased its Diversity, Equity, and Inclusion (DEI) program amid a federal investigation related to its acquisition plans. This move comes as the telecom giant seeks approval from the federal government for its merger.
The Chairman of the Federal Communications Commission (FCC), Brendan Kerr, had openly criticized Verizon in February for its emphasis on the DEI program, suggesting that it could impact the review process of Frontier Communications’ proposed $2 billion acquisition deal.
According to a letter from Verizon reviewed by Reuters, the company has taken down its “Diversity and Inclusion” website, eliminated DEI references in employee training, and altered various practices concerning employment and corporate sponsorships. As part of this shift, Verizon will abandon its diversity goals for its workforce and make changes to management compensation plans, particularly those that promote increased representation of women and minorities.
Verizon’s Chief Legal Officer, Vandana Venkatesh, acknowledged in her letter that some DEI policies might be associated with discrimination, indicating that these alterations will begin shortly. Kerr shared his approval of Verizon’s decision on social media, calling it a positive step for equal opportunities and non-discrimination.
The telecom company is currently working towards securing approval from the FCC for the Frontier acquisition, which was announced last September as a cash transaction valued at $20 billion. This acquisition aims to expand Verizon’s reach significantly,adding 2.2 million fiber subscribers and extending their services to 25 million locations across 31 states and Washington, D.C.
At the announcement, Verizon CEO Hans Vestberg described the deal as a “strategic fit” that would enhance their competitiveness in the U.S. market.
Frontier CEO Nick Jeffrey expressed that the merger would deliver considerable benefits to Frontier shareholders, open new opportunities for employees, and expand access to reliable internet connections for many Americans.
