Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

Tech firms’ move to flatten organizations raises concerns over DEI progress

With waves of layoffs hitting nearly every corner of the technology sector, some companies have been following a trend of flattening their organizations’ management hierarchies. Meta CEO Mark Zuckerberg, for example, said in February it would remove “some layers of middle management” amid its “Year of Efficiency.” Here in Canada, Shopify CEO Tobi Lütke indicated that its latest major round of layoffs, announced on May 4, will target managerial roles.

That has some worrying about what fewer leadership positions could mean for the Canadian tech sector’s work on diversity, equity and inclusion efforts that have picked up in recent years.

News

Tech firms’ move to flatten organizations raises concerns over DEI progress

‘We know for sure that [those from] underserved, underrepresented backgrounds are likely to bear the brunt of cuts’

By Jonathan Got
Students take part in an Information and Communications Technology Council-hosted event at Toronto Metropolitan University connecting women to cybersecurity employers in February 2023. Photo: Jonathan Got / The Logic
May 16, 2023
A A
A Small A Medium A Large
Share

Gift

Share

With waves of layoffs hitting nearly every corner of the technology sector, some companies have been following a trend of flattening their organizations’ management hierarchies. Meta CEO Mark Zuckerberg, for example, said in February it would remove “some layers of middle management” amid its “Year of Efficiency.” Here in Canada, Shopify CEO Tobi Lütke indicated that its latest major round of layoffs, announced on May 4, will target managerial roles.

That has some worrying about what fewer leadership positions could mean for the Canadian tech sector’s work on diversity, equity and inclusion efforts that have picked up in recent years.

Talking Points

  • Experts say tech workers from underrepresented groups are disproportionately affected during layoffs and face more barriers in their career advancement than their colleagues
  • Some also said that Canadian tech companies are only beginning to intentionally diversify their employee base and still have a long way to go to create true inclusion and build relationships with underserved communities

“The industry is already largely dominated by white males, and although we’re making progress, we know for sure that underserved, underrepresented [people] are likely to bear the brunt of cuts,” said Abdullah Snobar, executive director of DMZ, Toronto Metropolitan University’s startup incubator, in reference to the recent tech layoffs. “We’re getting some positive steps, but still far away from getting to the point we need to get to.”

More than 200,000 tech workers around the world have been laid off by over 750 companies since the start of 2023, according to website layoffs.fyi. Tech firms buttoning down in the slower economy by flattening hierarchies could diminish prospects for underrepresented workers to advance to leadership positions, according to some experts. While many companies made commitments to diversify their workforces and had the opportunity to do so during the pandemic tech boom, the current wave of layoffs threatens to reverse that progress.

A KPMG study released in January found that three in four Black Canadian workers said they are worried that a recession would hurt the career and promotion prospects of Black colleagues harder than others. Over two-thirds of respondents also said they think Black and racialized people would be first to lose their jobs in a recession.

Related Articles

The layoffs keep coming—but the big picture for Canadian tech is not so bad, experts say

By Jonathan Got

Talent Quarterly: Recruiters opt for ‘cloak-and-dagger’ hiring amid mass tech layoffs

By Jesse Snyder

“When organizations are going through economic challenges and people are trying to weather the storm, some of the knee-jerk reaction could be shutting down DEI efforts,” said Chimaobi Ezeibe, KPMG Canada’s partner of technology risk consulting. Even when opportunities in leadership roles become available, underrepresented people do not always come to mind, especially if there are few of them available on the table, he said.

However, Julia Blackburn, CEO of Toronto-based tech skills training non-profit NPower Canada, is optimistic that Canadian employers continue to be committed to diversity even during tough economic times. Her organization has helped over 5,000 underrepresented tech workers earn IT industry certifications since 2015. “I think people will be eliminated more based on a business case, [last]-in first-out, seniority, tenure, those types of more structured methodologies,” she said.

While using a merit-based policy for layoffs may look fair, Rutgers University’s associate professor Oscar Holmes IV, who recently completed a term on the Canada Research Chairs advisory committee on DEI policy, warned of hidden biases. If a company uses tenure as a criteria for layoffs when underrepresented employees were hired more recently, the cuts could hurt them more.

“You made it to the top, but there’s still another layer of discrimination that even top leaders face.” 


If there aren’t already members from diverse backgrounds on a team, Holmes recommends having three people from underrepresented groups to avoid tokenization, adding that it’s especially important at senior positions as white employees are less likely to help colleagues of colour.

“You made it to the top, but there’s still another layer of discrimination that even top leaders face,” he said.

Using productivity as a metric for evaluating staff for promotions can also be problematic. For example, women might risk appearing less productive in the workplace because they face harassment in the form of sexual quid pro quo more often than their male counterparts, Holmes said. He added companies need more nuanced employee evaluations that reflect realities such as discrimination and harassment, which can affect output. “They have to look at their entire performance management process to see if there are blind spots,” he said.

In addition to hidden biases, Ezeibe said it’s easy for leaders to overlook the need for diversity in management when they are under pressure to make cuts quickly. To help keep those considerations top of mind during a season of headcount reductions, he recommends implementing accountability mechanisms to ensure they are baked into the decision-making process because diversity is key to the success of an organization.

Gift the full article

Efforts need to be tailored to each underrepresented community as they face different challenges, said DMZ’s Snobar. DEI efforts have to be genuine and firms can’t just check diversity off a list. A good start to building a welcoming environment and earning employee trust would be to listen earnestly to understand the pains that exist and not to assume a one-size-fits-all approach, he said. 

“Authenticity honestly translates so damn well with people that come from these backgrounds,” he said.

#DEI #layoffs #leadership

Sponsored Content

The real-world economic offshoots of sovereign AI

By Deborah Aarts
Illustration of a plane flying above a mailbox

Increasing healthcare access across Canada

By Deborah Aarts

What it takes to lead a frontier firm

By Deborah Aarts
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: Jonathan Got / The Logic

Most Popular This Week

Janice Charette and Dominic LeBlanc walking toward the camera next to a white pavilion that bears the logo of the 2026 G7 meeting in France.
News

Canada ‘can’t even talk about anything else’ if Trump makes good on latest tariff threat

By Joanna Smith
A man walks across a large greenhouse with large glass ceilings. He is walking on a white path through rows of green lettuce growing on the ground.
News

Canadian businesses were bracing for a wave of retirees. Then along came AI

By Anita Balakrishnan
An image of a man wearing a dark suit jacket and tie. He is wearing a mic and looking slightly away from the camera.
News

Brookfield and Cohere execs among high-profile guests at CVCA summit

By Catherine McIntyre
In this photo illustration the Moneris logo is seen displayed on a smartphone.
News

U.S. private equity is buying Canada’s biggest payments processor. Some people are worried about sovereignty

By Claire Brownell

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

An aerial photo of a petroleum sea terminal, in a landscape of mountains and coastal waterways, with residential homes in the right foreground. There are two tankers docked at the terminal.
News

Canadian oil finds growing market in Asia as Trans Mountain fills up

By Meghan Potkins

Briefing

Quebec and Newfoundland and Labrador reach tentative $49B energy deal

By Joanna Smith   |   Aug 17, 2026 | 3:44 PM ET

Canadian institutions held about $500B in private credit by Q1 2026, Bank of Canada says

By Chaimae Chouiekh   |   Aug 17, 2026 | 3:03 PM ET

Non-residents are buying Canadian debt at an unprecedented pace

By Kevin Carmichael   |   Aug 17, 2026 | 11:26 AM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

U.S. private equity is buying Canada’s biggest payments processor. Some people are worried about sovereignty

By Claire Brownell   |   Aug 12, 2026
In this photo illustration the Moneris logo is seen displayed on a smartphone.
News

Brookfield and Cohere execs among high-profile guests at CVCA summit

By Catherine McIntyre   |   Aug 13, 2026
An image of a man wearing a dark suit jacket and tie. He is wearing a mic and looking slightly away from the camera.
News

Canadian businesses were bracing for a wave of retirees. Then along came AI

By Anita Balakrishnan   |   Aug 13, 2026
A man walks across a large greenhouse with large glass ceilings. He is walking on a white path through rows of green lettuce growing on the ground.
Special Report

Meet Canada’s leading innovators from the Class of 2026

By Sara Harowitz   |   Jul 29, 2026
A multimedia illustration showing images of six smiling individuals, on a dark background with blue shapes.
Commentary

Carmichael: Canada’s biggest companies aren’t wired for growth. That’s a problem for us all

By Kevin Carmichael   |   Aug 15, 2026
News

The Fisheries Department is losing its ability to back maritime innovations, documents warn

By David Reevely   |   Aug 11, 2026
A wide-lens aerial shot of a red Canadian Coast Guard ship amid a sea of white ice pans. The effect of the lens exaggerates the curvature of the horizon.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account