(Bloomberg) — The increasing departure rate of female, Black, and Latinx employees at Microsoft Corp. is undermining the company’s efforts to cultivate a diverse workforce.

According to Microsoft’s diversity and inclusion report released Wednesday, women constituted 32.7% of the exits for the fiscal year that ended June 30, a rise from 31% in 2023. Black employees made up 10% of departures in the U.S., compared to 8.7% the previous year, while Latinx exits increased to 9.8% from 8%. In contrast, there was a decrease in departures among male and Asian employees compared to 2023.

The software giant attributes these trends to competitors poaching talent and a shift away from its physical and online retail business, which has traditionally had a more diverse staff.

Despite continuing to recruit from underrepresented groups, Microsoft must intensify its retention efforts, according to Chief Diversity Officer Lindsay-Rae McIntyre. In an interview, she stated, “Once that talent arrives at Microsoft we know that we’ve got to do more.” Enhancements such as mentorship opportunities and career paths are crucial for providing ongoing incentives for employees to remain with the company.

An increasing number of jobs in cloud-computing data centers, which are widely distributed geographically, is providing Microsoft the chance to enhance diversity in hiring, she explained.

Diversity is becoming increasingly significant for Microsoft, as the company is eager to assure that its new artificial intelligence products are devoid of racial, gender, and other biases.

“It’s going to take lots of perspectives to create a trusted AI that everyone is willing to engage with,” McIntyre stated.

Few companies reveal retention statistics based on race and gender. Last year, BlackRock Inc. published the findings of an audit conducted by former US Attorney General Eric Holder, which indicated that Black and Latinx leaders were leaving quickly enough to nearly negate the firm’s efforts to diversify its workforce.

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