03:37 PM EDT, 03/18/2025 (MT Newswires) -- Morgan Stanley ( MS ) initiatives related to diversity, equity and inclusion are being diluted, not only because of the political climate, but also due to internal conflicts, The Wall Street Journal reported Tuesday, citing interviews with current and former employees.

The company currently faces discrimination accusations and lawsuits from both white and Black employees, while some staff said its efforts were not enough or were too rigid, according to the report.

An initiative targeted at increasing Black hires was criticized after some employees found out there were pay discrepancies with peers. Some Black employees said they got little support after being hired through a minority training program, WSJ reported.

On the other end, white managers also found problems with the diversity push. Some in the company's wealth business allege the company blocked laying off some nonperformers because they were women or minority employees, they told the news outlet.

A Morgan Stanley ( MS ) spokesman disputed that the company's policies created tensions, according to the report.

The Journal reported that Morgan Stanley ( MS ) has changed the language in its reports and programs from diversity-related to terms more generic.

Morgan Stanley ( MS ) did not immediately reply to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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