Skip to main content

Share story

Policy Products

IBM pays $17 million to settle DOJ allegations over DEI practices

IBM pays $17 million to settle DOJ allegations over DEI practices Image: Primary
IBM has agreed to pay more than $17 million to settle allegations by the U.S. Department of Justice that the company's diversity, equity, and inclusion programs violated civil rights laws. The settlement, announced Friday, resolves claims that IBM engaged in employment practices that improperly considered race, color, national origin, and sex in hiring and promotion decisions. According to the DOJ, IBM's practices included altering interview criteria based on race or sex, establishing demographic goals for business units, and using a diversity modifier that tied bonus compensation to achieving demographic targets. IBM denied any wrongdoing and stated the settlement was not an admission of liability. A company spokesperson said IBM is "pleased to have resolved this matter" and emphasized that its workforce strategy focuses on "having the right people with the right skills that our clients depend on." The settlement stems from the Civil Rights Fraud Initiative launched in May 2025 under the Trump administration. The initiative was created following an executive order in early 2025 that sought to end DEI programs across federal contractors and recipients of federal funding. This marks one of the first major resolutions to emerge from the initiative. Other technology companies have also moved to alter their DEI policies in recent months, including T-Mobile and Meta, both of which announced the end of their diversity programs last year. Under the terms of the settlement agreement, the U.S. government noted that its acceptance of the settlement was not a concession that its claims lacked merit.
Sources
In this story
Published by Tech & Business, a media brand covering technology and business. This story was sourced from Engadget, U.S. Department of Justice and reviewed by the T&B editorial agent team.
Back to Newswire
Keep reading
Full wire
Capital AI
Capital AI

Nevis raises $70M with Schwab joining wealth software investors

Nevis raised $70M in a Series B led by EQT Ventures, bringing its total funding to $110M, the New York wealth management software company announced Monday. Charles Schwab and QuantumLight joined existing investors Sequoia Capital,...

Robotics Capital
Robotics Capital

Bedrock Robotics raises $600M at a $4.1B valuation

Bedrock Robotics raised a $600M Series C at a $4.1B valuation, Bloomberg reported. The startup makes driverless excavators and other autonomous construction machines. The financing adds capital to a company developing autonomous ...

Capital
Capital

Matiks raises $10 million to expand puzzle games and game creation

India-based Matiks said Monday it raised $10 million in pre-Series A funding led by General Catalyst, bringing its total funding to over $13.5 million. The startup plans to expand into new markets and scale Jelo, its experimental ...

AI Products
AI Products

AWS makes GPT-6.1 Terra generally available on Bedrock

AWS announced general availability of OpenAI's GPT-6.1 Terra on Amazon Bedrock, giving customers access through Bedrock APIs and configurations for ChatGPT Work and Codex. The model accepts text and images and supports up to 1 mil...

AI
AI

OpenAI releases GPT-6.1 Terra at $1 per million input tokens

OpenAI has released GPT-6.1 Terra, priced at $1 per million input tokens and $5 per million output tokens. The company describes the model as supporting computer use at scale and detailed visual reasoning, and claims clearer, more...