Wells Fargo (WFC) has become the latest bank to announce that it is rolling back its diversity, equity, and inclusion (DEI) programs. With a market capitalization of $249.96 billion, WFC stock is up about 43% over the past year.
In a memo sent to employees, the San Francisco-based bank said it is ending a hiring rule that required diverse candidates in the first round of interviews for senior roles in the U.S., according to Bloomberg. It also said that training on diverse candidate slates will no longer be part of the hiring process.
“In light of the current environment, we have decided to discontinue the diverse slate guidelines,” said the company in the memo. The bank further added that it will still “source a broad pool of candidates” when recruiting.
Other Big Banks Are Doing the Same
With the end of its DEI programs, Wells Fargo now joins other banks like Bank of America (BAC), which recently dropped mentions of diversity hiring goals in its latest annual filing. Citigroup (C) and Goldman Sachs (GS) have also scaled back DEI efforts due to rising political and legal pressure.
The push against DEI in the U.S. has gained momentum since President Trump’s election. On his first day in office, he ordered federal agencies to stop all “equity-related” grants or contracts and required federal contractors to confirm they do not support DEI programs.
It’s not just banks pulling back. Major companies like Ford (F), McDonald’s (MCD), Walmart (WMT), and tech giants like Meta (META) and Google (GOOGL) are also cutting back on these initiatives.
What Is the Price Target for WFC Stock?
Overall, Wall Street has a Strong Buy rating on the stock, based on 11 Buys, eight Holds, and zero Sells. The average WFC price target of $83.94 implies about 9.80% upside potential from current levels.
