A bastion of inclusivity. Why Swedish IT Giants Hold on to DEI Principles While the U.S. Abandons Them — and Why It Doesn't Always Work

In recent years, the concept of DEI (Diversity, Equity, and Inclusion), which had long been considered the “gold standard” of the Western corporate world, has faced a serious crisis of confidence. In the U.S., under pressure from Donald Trump’s policies and criticism from “bro-ligarchs” (such as Elon Musk), tech giants have begun to scale back these programs en masse. However, Scandinavia remains their main defender in Europe for now.

We take a closer look at how Spotify, Ericsson, and Klarna are trying to uphold the principles of equality—and where this system falls short.

What's going on in the world?

Until recently, inclusivity was a hallmark of Western companies. But by mid-2025, the situation had changed dramatically: they had completely disbanded their DEI departments Meta, IBM, Qualcomm, and T-Mobile. The trend had already begun earlier: Microsoft closed the relevant department in July 2024, and Zoom — a month earlier. Critics argue that such programs hinder business, and in the U.S., authorities have begun investigating DEI practices for “reverse discrimination.”

How does it work in Sweden?

Swedish companies—from Spotify to Ericsson—continue to publish annual reports on their progress toward equality, asserting that this is part of their business model, not just a passing trend.

• Spotify: The "Bandmates" Concept. The company positions itself not as a rigid corporation, but as a musical collective. By 2025, the percentage of women at Spotify had reached 43,8%, and among top management— 40,6%, which is significantly higher than the average for the Swedish IT market (where women make up only 24%). Principles of inclusion are even embedded in the algorithms: through special programs (EQUAL and GLOW), the service promotes female performers and LGBTQIA+ creators.
• Ericsson: Inclusion as a KPI. At this company, achieving diversity goals directly impacts salary levels of top managers. On executive dashboards, metrics such as “freedom of expression” and “percentage of women” appear alongside financial indicators. Support groups have also been established for ethnic minorities and people with disabilities.
• Klarna: Scandinavian Benefits in the U.S. The fintech giant has adopted the Swedish practice of paid parental leave at its offices in the UK and the U.S. While the U.S. government provides almost no support to parents, Klarna pays them a benefit of $250 until the child turns two and grants both parents 20 weeks of paid leave.

Why does the system "break down"?

Despite its progressive rhetoric, the Scandinavian approach has serious problems that become particularly apparent when attempting to scale the business to other countries.

1. The gender pay gap. At Spotify's U.K. branch, the gender pay gap has not only failed to disappear but has actually widened: from 12.7% in 2023 to 13.9% in 2024.
2. Lawsuits in the United States. Former Spotify employees have accused the company of racial discrimination. One of them claims that during mass layoffs, she (as an African American woman) was treated much more harshly than her white colleagues, and that promotions at the U.S. office went mainly to white men.
3. Conflict with Artificial Intelligence. The Klarna case showed that inclusion often takes a back seat to cost-cutting. When the company decided to replace hundreds of employees with AI bots, it was the support and back-office departments that were hit hardest—those departments employed the most women and young professionals. It later became clear that the AI wasn’t up to the task, and the company began hiring people again—but now on a remote basis and without benefits packages, which angered the unions.

What's next?

Experts believe that the Scandinavian model works perfectly in “safe Stockholm,” protected by local legislation, but falls short when it comes to global markets. In the report Ericsson As of 2025, the acronym DEI is now found primarily in the section "Risk Factors" — The company fears legal action and pressure from U.S. authorities. It seems that this “island of inclusivity” in Scandinavia will be forced to either adapt to new conservative trends or continue the fight on its own.