Business

(WASHINGTON) — Some of the nation’s top business and labor leaders voiced alarm in the hours following the presidential debate on Thursday night, as some raised concern about President Joe Biden’s age and others questioned former President Donald Trump’s fitness for office.

Prominent figures who already held misgivings about Biden seized on his debate performance and doubt whether Biden can handle the demands of a second term. Even allies of Biden stopped short of praising his performance, including some who entertained the possibility of replacing Biden at the top of the Democratic ticket.

Some leaders of companies and labor unions, on the other hand, sharply criticized a dearth of policy and a stream of falsehoods issued by Trump during the 90-minute event. Among them, some reaffirmed their support for Biden.

Billionaire entrepreneur Mark Cuban, who attended a Biden fundraiser in March, said in a statement on X that both candidates performed poorly. The display elicited enough worry about Biden that Cuban is now open to a discussion about him stepping aside, Cuban added, noting that he would vote for Biden if he remains the nominee.

“His performance was awful. But so was Trump’s,” Cuban said. “Biden was feeble. Trump couldn’t directly answer a single question.”

The Biden campaign did not immediately respond to a request for comment from ABC News. Neither did the Trump campaign.

Within 10 minutes of the start of the debate, Biden-friendly CEOs began sending panicked emails and text messages, Jeffrey Sonnenfeld, a professor at Yale University who keeps close contact with executives, told ABC News.

Some CEOs, who had spoken with Biden as recently as last month at a fundraiser in Greenwich, Connecticut, felt “completely weirded out” watching a candidate who appeared much less capable, Sonnenfeld said.

In all, Sonnenfeld said he has heard alarm from about 30 CEOs at private and public companies since the debate, saying they’ve used terms like “fear, nausea and distress” in response to Biden’s performance.

More than half of the CEOs said that Biden should end his presidential campaign and allow another Democrat to run, Sonnenfeld said, noting that the urgency among them was fueled in part by “revulsion toward Trump.”

“They were so horrified by the force and volume of Trump’s demonstrable lies,” Sonnenfeld said. “That only intensified their hostility toward the prospect of a second Trump candidacy.”

Meanwhile, some Trump supporters across Silicon Valley and Wall Street said Biden’s performance reaffirmed their allegiance.

“Tonight was an indictment of the Democratic Party,” Bill Ackman, a billionaire hedge fund manager, said on X. “How could they? Did they think they could pull one over on the American people?”

David Saks, a high-profile venture capitalist who has endorsed Trump, similarly questioned Biden’s capacity in a post on X.

“If Biden can’t handle a debate, how can he handle the most dangerous foreign policy situation since the Cuban Missile Crisis?” Saks said. “It’s time to pull back from the brink.”

By contrast, labor leaders supportive of Biden stopped short of praising his debate performance but emphasized the shortcomings of Trump.

“Donald Trump once again showed himself to be a scab, a liar, and a billionaire who will never stand with the working class,” Shawn Fain, the president of the United Autoworkers, which has endorsed Biden, told ABC News in a statement.

Randi Weingarten, the president of the American Federation of Teachers, which also endorsed Biden, echoed such criticism of Trump.

“Joe Biden’s performance might not have matched his performance as president, but he tried to get the facts out and lay down his vision for the country — while Donald Trump told the same lies over and over and was rarely held to account by the moderators,” Weingarten said.

On the campaign trail, Biden and Trump have promoted competing agendas for the U.S. economy.

Biden has vowed to raise taxes on large corporations and wealthy people, while Trump has promised to renew a tax cut measure from his first term in an effort to spur economic activity.

Trump has frequently criticized Biden for the nation’s yearslong bout of elevated inflation. For his part, Biden has acknowledged that price increases remain too high but he has touted significant progress in bringing inflation down well below its peak.

In the aftermath of the debate, many prominent CEOs and labor leaders opted to forego public statements.

Dean Phillips, an entrepreneur and an opponent of Biden in the Democratic primary, drew attention to his own muted response.

“Speak only if it improves upon the silence,” Phillips said in a post on X, attributing the phrase to anti-colonial Indian leader Mahatma Gandhi.

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(NEW YORK) — Wendy’s has long offered a $5 meal deal, but newcomers like McDonald’s and Burger King have prompted an influx of fast food companies vying for customers’ attention and appetites.

Now, Taco Bell is the latest chain bringing more affordability to the table.

The California-based Mexican-inspired fast-food chain announced the launch of its $7 Luxe Cravings Box on Thursday, which includes a Chalupa Supreme, Beefy 5-Layer Burrito, Double Stacked Taco, chips and nacho cheese sauce, and a medium drink.

This limited-time offer gives customers a 55% discount off the suggested individual menu prices, according to Taco Bell.

The company said it created the new combo box “to satisfy fans’ hunger with quality, full-sized fan favorites at an affordable price.”

Taylor Montgomery, chief marketing officer for Taco Bell North America, said in a statement, “With the launch of the $7 Luxe Cravings Box, we’re giving consumers our most craveable items at an affordable price point and living up to our commitment on value to satisfy cravings with fan favorite full-sized menu items. Our Cravings Value Menu is one of the leading value menus within the industry, offering 10 items at under $3, because we believe consumers shouldn’t have to choose between affordability and abundance.”

In addition to McDonald’s, Wendy’s, Burger King and now Taco Bell, Subway also recently launched a new value menu item, the new $3 Footlong Dippers.

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(NEW YORK) — Walgreens plans to close a large share of its U.S. stores over the next three years, Chief Executive Tim Wentworth said on a conference call with industry analysts on Thursday.

Wentworth described a quarter of the company’s 8,500 stores as “underperforming,” saying the health care giant would close a “significant portion” of those locations. The exact number of closures is still being finalized, Wentworth said.

Walgreens will make changes at the remainder of the struggling stores in an effort to revitalize them, Wentworth said. “We will continue to consider closure if they don’t improve,” he added.

The announcement arrives nearly seven months after the company embarked on a wide-ranging review of the business in response to flagging consumer spending and adverse changes in the pharmacy industry.

“Everything has been on the table,” Wentworth said. “We are at a point where the current pharmacy model is unsustainable.”

The company reported $28.5 billion in revenue over the three months ending in May, which amounted to a slight increase compared to the same period a year ago, an earnings release on Thursday showed. The results nevertheless underperformed expectations, the company said.

The recent struggles for the company’s U.S. business have stemmed in part from price-conscious customers fatigued by a yearslong bout of elevated prices that have strained household budgets.

“Our customers have become increasingly selective and price-sensitive in their purchases,” Wentworth said.

Walgreens has slashed prices on many of its products this year, keeping pace with discounts at other major retail chains like Target and McDonald’s. Last month, Walgreens announced discounts for 1,300 of its products, enticing customers with lower prices for many items, including miniature pretzels to coolers to gummy vitamins.

Lower prices have triggered some additional customer spending but have hurt the company’s profit margins, Walgreens Boots Alliance CFO Manmohan Mahajan said on Thursday’s conference call.

The company is also facing challenges within the pharmacy industry due to costly regulations and insufficient reimbursements, Wentworth said. He pointed to the relationship between the company and third-party pharmacy benefit managers, or PBMs, which act as intermediaries between insurance companies and pharmacies.

“We continue to have active discussions with PBM and supplier partners,” Wentworth said.

Walgreens will seek to minimize layoffs and retain workers as it cuts stores, Wentworth said. “We intended to redeploy the vast majority of the workforce at the stores we close,” he added.

The company, based in Deerfield, Illinois, employs about 240,000 people nationwide. In 2021, the company raised the minimum wage for staff to $15 per hour.

On Thursday, Walgreens lowered financial expectations for the forthcoming quarter. Still, Wentworth said he remains optimistic about the company’s future.

“I’m at Walgreens today because I believe in the future of retail pharmacy and particularly our future,” he said. “Human-to-human interaction is an imperative in healthcare and the core foundation of our business.”

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(NEW YORK) — Boeing will be subject to sanctions for disclosing non-public information about an investigation into how a door plug blew out of one of its 737 Max 9 planes, the National Transportation Safety Board said on Thursday.

Officials accused the airplane manufacturer of “blatantly” violating a signed agreement with the NTSB, under which the company has party status to investigation information that hasn’t otherwise been made public.

“During a media briefing Tuesday about quality improvements at Boeing Commercial Airplanes, a Boeing executive provided investigative information and gave an analysis of factual information previously released,” the NTSB said in a press release.

The released added, “Both of these actions are prohibited by the party agreement that Boeing signed when it was offered party status by the NTSB at the start of the investigation.”

NTSB officials opened an investigation in January after a door plug fell off an Alaska Airlines plane, a Boeing 737 Max 9, shortly after the aircraft took off from Portland International Airport.

The company will retain its party status, but will no longer have access to investigation details, NTSB said.

During a media event on Tuesday, company executives said the NTSB investigation amounted to a search for the person who was responsible for the faulty door plug, according to the NTSB.

“The NTSB is instead focused on the probable cause of the accident, not placing blame on any individual or assessing liability,” officials said in the press release.

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(NEW YORK) — For American consumers who enjoy adding slices of smoked salmon to a bagel or other breakfast dishes, it’s time to check the refrigerator, because one producer of the famed Norwegian export has recalled products from stores in 15 states.

Norwegian smoked salmon recalled in 15 states

Netherlands-based Foppen Seafood issued a recall for one lot of its Smoked Norwegian Salmon Slices after routine testing revealed the presence of Listeria monocytogenes, the company announced in a statement dated June 22 and shared on the U.S. Food and Drug Administration website Wednesday.

“At Foppen Seafood, we operate to the highest standards of health, safety and quality control. We have taken immediate steps to address this isolated incident and we are collaborating closely with Kroger and the U.S. Food and Drug Administration (FDA) to ensure a swift resolution,” the company stated.

What smoked salmon products are impacted by the recent recall?

Impacted products include “toast-sized” Foppen Smoked Norwegian Salmon Slices sold in 8.1-ounce packages with the UPC code 840137100002.

The lot number 412 can be found in the clear plastic window cutout on the front of the package, according to the company.

Where recalled smoked salmon products were sold

The affected products were sold in Kroger and Payless Supermarkets across 15 states, including Alabama, Arkansas, Georgia, Illinois, Kentucky, Louisiana, Michigan, Missouri, Mississippi, Ohio, South Carolina, Tennessee, Texas and West Virginia.

What consumers can do if they purchased recalled smoked salmon

“Consumers should discard product or return for refund. Customers who have purchased the affected Smoked Norwegian Salmon Slices with lot number 412 are advised not to consume the product,” the company said in its recall announcement. “They should return it to the place of purchase for a full refund or replacement.”

Customers with additional questions or concerns are encouraged to contact Foppen Seafood directly via phone at (844) 646-0928, 24 hours a day, seven days a week, or by email at supportQ1087@foppenseafood.com.

Symptoms, side effects of Listeria monocytogenes

According to the Centers for Disease Control and Prevention, listeria can cause severe illness “when the bacteria spread beyond the gut to other parts of the body” after a person consumes contaminated food. Those at higher risk include pregnant people, those aged 65 or older, or anyone who has a weakened immune system, the CDC says.

“For people who are pregnant, Listeria can cause pregnancy loss, premature birth, or a life-threatening infection in their newborn,” the agency states on its website. “For people who are 65 years or older or who have a weakened immune system, Listeria often results in [severe illness that may lead to] hospitalization and sometimes death.”

Other people can be infected with listeria, but rarely become seriously ill, according to the FDA.

According to the CDC, anyone infected with listeria may experience “mild food poisoning symptoms” such as diarrhea or fever, and many recover without antibiotic treatment.

The CDC has advised people to contact a health care provider if they think they may have eaten contaminated food and are experiencing related symptoms.

“You should seek medical care and tell the doctor about eating possibly contaminated food if you have a fever and other symptoms of possible listeriosis, such as fatigue and muscle aches, within two months after eating possibly contaminated food,” the agency states on its website. “This is especially important if you are pregnant, age 65 or older, or have a weakened immune system.”

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(BELMONT, Calif.) — Volkswagen on Tuesday said it would invest up to $5 billion in Rivian, an electric vehicle startup based in California. The move sets the stage for a partnership that could benefit both companies and reshape the growing EV industry.

The joint venture, which the two companies said would focus on software development, grants Volkswagen access to Rivian’s engineering expertise while bolstering Rivian with a much-needed cash infusion.

“Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost,” Oliver Blume, CEO of the Volkswagen Group, said in a statement on Tuesday. “The partnership fits seamlessly with our existing software strategy, our products, and partnerships.”

Here’s what to know about the $5 billion deal between Volkswagen and Rivian:

What do Volkswagen and Rivian bring to the partnership?

At first blush, Volkswagen and Rivian appear to be a fairly odd couple.

Rivian has struggled to turn a profit even as sales of its R1S sport utility vehicle and R1T truck have grown. Over the final three months of last year, the company set a quarterly record for car production and delivery but reported more than $600 million in losses, an earnings report showed. During that period, the company delivered about 14,000 cars.

The company manufactures its vehicles at a factory in Normal, Illinois. In March, the company said it was pausing construction of a manufacturing facility in Georgia.

By contrast, Volkswagen began operations in Germany before World War II, steadily expanding into a global behemoth with 114 production facilities worldwide, according to the company’s website.

Over the first three months of this year, Volkswagen brought in about $80 billion in sales, an amount 67 times larger than the revenue generated at Rivian during the same period, an earnings report showed.

Volkswagen, however, has struggled to make a successful transition to EVs. The company saw its EV sales fall slightly at the outset of 2024 compared to the same quarter last year, Inside EVs reported in April.

How will the deal work?

The partnership will focus on the development of software used to operate electric vehicles, Rivian and Volkswagen said in a statement.

Improved software, the companies added, will lower production costs and accelerate advances in new products.

In theory, the savings could help Rivian erase its losses and reach a wider market, while allowing Volkswagen to produce more competitive electric vehicles.

Volkswagen will initially invest $1 billion, before increasing its funding to as much as $5 billion, the company said.

“Since the earliest days of Rivian, we have been focused on developing highly differentiated technology, and it’s exciting that one of the world’s largest and most respected automotive companies has recognized this,” Rivian founder and CEO R.J. Scaringe said.

He added, “Rivian was created to help the world to transition away from fossil fuels through compelling products and services, and this partnership is beautifully aligned with that mission.”

In early trading on Wednesday, shares of Rivian soared nearly 30%.

Dan Ives, a managing director of equity research at investment firm Wedbush, praised the partnership in a note to clients on Wednesday, saying the move would help Rivian increase production while lowering costs.

“This is a core game-changer for Rivian,” Ives said.

The stock price of Volkswagen Group, on the other hand, inched downward in early trading on Wednesday.

What does this mean for the electric vehicle industry?

The EV industry is widely expected to grow in the coming years. Sales of Evs are expected to quintuple by 2030, ultimately accounting for 40% of cars purchased worldwide, Morningstar forecasted in September.

Poised for expansion, the market has unleashed fierce competition among automakers. Companies exclusively focused on EVs, such as Tesla and Chinese carmaker BYD, lead the industry; but they face competition from deep-pocketed legacy companies making the transition.

Ford, GM and Stellantis are each investing tens of billions of dollars into EV development, according to a S&P Global Mobility Report. The partnership announced by Volkswagen helps the German automaker match the scale of investment taken up by its peers.

Volkswagen has committed to achieving net zero carbon emissions by 2050. Last year, Rivian said it signed a United Nations agreement to achieve net zero emissions by 2040.

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(NEW YORK) — It’s almost Independence Day in the United States, and if you’re making a trip to the grocery store to prep for any Fourth of July food-related festivities, experts have shared new pricing data on some of the most popular products to help you plan ahead.

Wells Fargo’s Agri-Food Institute has released its annual Fourth of July Food Report, which calculated costs on hot ticket items for backyard get-togethers like hamburgers, which are actually three times cheaper than dining out this year.

With the worst of food inflation in the rear view for now, the mid-June 2024 Consumer Price Index showed “Food at Home” — think groceries — only rose by 1% compared to the “Food Away from Home” category, which rose by 4%.

How to save on food this Fourth of July

The Agri-Food Institute experts found that the cost savings are substantial when comparing the price for ingredients to make a home-cooked quarter-pound hamburger versus the average cost of popular fast-food restaurant quarter-pound burgers.

“The current cost of ingredients to prepare a quarter pound hamburger with cheese, tomato and lettuce at home is $2.16 per burger,” the report stated. “For a party of 10, the home chef will save nearly $50 — $47.90, to be exact — on burgers by firing up the grill.”

The report also looked at side dishes along with other foods that make a great cookout menu.

If prepping potato salad at home, white potatoes are approximately $0.96 per pound, which is a 4.4% drop since last year, according to the Bureau of Labor Statistics.

Although the price for potato chips has increased 2.7% since this time last year, the experts at Wells Fargo said “they are still a good buy for appetizers and a side for burgers.”

Salsa prices are up 2.5% from a year ago, but guacamole has dropped by 1.1%, so tortilla chips and guacamole are a smart snack choice for celebrations this year.

You can’t have a barbecue without something to drink, and with bottled iced tea prices up nearly 2.4%, which is in line with many other types of beverages, preparing a large batch of tea at home will help you save big — plus it helps reduce packaging waste.

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(NEW YORK) — The post-pandemic travel boom has sparked some ambitious and necessary changes within the airline industry due to the influx of frequent flyers who are seeking more from their pre-flight routines, be it enrolling in expedited security lines or enjoying access to airport lounges.

Delta Airlines previously recognized that the steady stream of customers was causing overcrowding at some of its Sky Club lounges, prompting the company to adjust its entry policies, but now the Atlanta-based carrier is opening the first of many doors to a new category of higher tier lounges.

Delta debuts first Delta One Lounge, new premium airport experience

The new Delta One Lounge in Terminal 4 at John F. Kennedy International Airport, which officially opens Wednesday to customers departing or arriving in the Delta One cabin, is the largest of any existing Delta Sky Club and boasts an array of elevated amenities and experiences including shower suites, spa treatments, relaxation pods, an outdoor terrace, a signature bar and a full service brasserie-style restaurant.

Claude Roussel, vice president of Delta Sky Clubs and Lounge Experience, called this a “new era for Delta,” adding that the airline is “raising the bar across the board.”

“We want our guests to feel the difference here; Moreover, we want them to feel welcomed and valued from the moment they step through the door,” he said.

The opening is just the beginning for Delta’s latest premium strategy, with at least two more Delta One Lounge outposts expected to open this fall in Los Angeles and Boston.

Guests enter and pass the concierge desk before walking into the sprawling 39,707-square foot space with modern interior design, high ceilings, brass accents, floor-to-ceiling windows overlooking the tarmac and an area for every type of pre-flight experience.

Beyond the entrance sits a fireplace lounge accented with pillows, vases and coffee table books from the famed Italian fashion house Missoni, Delta One’s newest onboard partner; an art deco-inspired Icon Bar with signature drinks like the Woodford Reserve Peach Tree Old Fashioned, a nod to the airline’s Georgia roots; a year-round terrace with bar cart services; a large grab-and-go market and bakery; a business lounge with plug-and-play monitors; and tucked in the farthest corner is the wellness area with a quiet serenity lounge, shower suites outfitted with Grown Alchemist products and a hidden closet to utilize the lounge’s valet steaming service that will refresh any garments.

The standout 140-seat brasserie sets the new Delta One Lounge apart from its existing Sky Clubs and from other business lounge competitors, offering a seated three-course dining service with seasonally inspired dishes from chef Nickolas Martinez such as hamachi crudo, corn agnolotti, seared salmon, steak frites and desserts like chocolate soufflé.

The culinary collaboration comes from Restaurant Associates and Union Square Events, a concept from famed New York restaurateur Danny Meyer.

For those who want a more casual eating experience, the Market and Bakery has pre-plated bites for convenient walk-up service, offering everything from small sandwiches to custom made salads, fresh flatbread pizzas and a juice bar.

JFK Delta One Lounge fast stats

• 515 seats
• 8 shower suites
• 8 soundproof booths
• 9 relaxation pods
• 140-seat brasserie-style restaurant
• Year-round terrace with seating for 40
• Valet service to your gate
• Hours of operation: 4:30 a.m. to 11 p.m.

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(NEW YORK) — When artificial intelligence chipmaker Nvidia became the world’s most valuable company last week — surpassing household names like Apple and Microsoft — the moment appeared to be a declaration of victory for the AI boom on Wall Street.

Over the next three trading days, however, Nvidia shares plummeted 13%. The company lost more than $500 billion in value and plopped down to third place among the largest firms.

Rather than a rebuke of AI or Nvidia, the extraordinary losses amounted to a routine selloff on a massive scale as traders sought to cash in on some of the gains made by the chipmaker during its meteoric rise, market analysts told ABC News.

Analysts differed on whether the recent slide offers a worthwhile opportunity for investors to buy the stock at a favorable price.

“It’s normal to see stocks take a breath,” Steve Sosnick, chief strategist at trading firm Interactive Broker, told ABC News. “What’s abnormal is that Nvidia went so far and so long without taking a breath.”

It’s difficult to overstate the success that Nvidia enjoyed prior to its recent decline. The California-based company, which sells the majority of computer chips behind new AI products like ChatGPT, saw its stock soar nearly 700% in two years.

Even when accounting for the recent decline, shares of Nvidia have climbed nearly 150% since the outset of 2024.

After a prolonged ascent, stocks often fall victim to a phenomenon called profit-taking, when traders sell off some of their shares to lock in the returns. In this case, analysts said, that routine pullback was larger than one might expect because the preceding rise had been unusually steep.

“It’s not normal to have a stock go up this dramatically,” Sosnick said. “As a result, when it’s due for a little bout of profit taking, that will be abnormal, too.”

Ivan Feinseth, a market analyst at Tigress Financial, agreed. “The stock has had a huge run,” Feinseth told ABC News. “Some people who are more short-term oriented feel it’s time to take a profit.”

While citing a trend tied to market behavior rather than business performance, the analysts dismissed the notion of newfound weakness in the AI sector or Nvidia.

In an earnings release last month, the company reported $26 billion in revenue, which marked a staggering increase of 262% over the previous year. Profits jumped more than 600% over that same period.

In March, the company announced its latest and most powerful chip, Blackwell. Amazon, Google, Meta, Microsoft and OpenAI are among a who’s who of major tech firms set to adopt the new technology, Nvidia said in a statement.

“It’s Nvidia’s world — everyone else is paying,” Dan Ives, a managing director of equity research at investment firm Wedbush, told ABC News.

Despite their agreement on the cause of the stock decline, analysts differed in their assessment of whether the current moment offers a chance for investors to jump into the stock.

Feinseth encouraged investors to buy into the stock, since he expects the dip to draw renewed interest in the company and send the price higher. “This is a stock that everybody wants to own and everybody is going to react to buying any selloff,” he said.

Early trading on Tuesday appeared to confirm that view. By noon, the stock had risen almost 5%, recovering much of what it had lost in recent days.

“This was just a small bump,” Ives said.

Sosnick, by contrast, cautioned against buying Nvidia shares unless the price falls further. Otherwise, he added, the relatively modest potential gains do not outweigh the risk of continued volatility.

“The stock is not super expensive but nor is it particularly cheap,” Sosnick said.

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(NEW YORK) — High-profile anti-LGBTQ+ consumer boycotts last spring left corporations little time to reconsider long-planned marketing campaigns for Pride Month, experts previously told ABC News.

Over the past year, major companies have had ample opportunity to prepare their advertising for the time of year when public attention centers on the LGBTQ+ community. In this case, however, Pride Month coincides with a growing conservative backlash against diversity, equity and inclusion programs (DEI) in the private sector.

Experts who spoke with ABC News differed about the scale of LGBTQ+-themed advertising so far during Pride Month, but they agreed the anti-DEI movement has made it more difficult for companies to align their policies with the support for LGBTQ+ employees voiced in such marketing.

“When you have this level of political animosity as part of our public discussion, it will show itself in the market,” Joanna Schwartz, a professor of marketing at Georgia College & State University who focuses on LGBTQ+ advertising, told ABC News.

In recent months, some business leaders have sharply criticized corporate DEI programs, including prominent figures such as billionaire investor Bill Ackman and Tesla CEO Elon Musk.

At least 10 states have implemented restrictions on diversity, equity and inclusion, or DEI: Alabama, Florida, Idaho, Indiana, North Carolina, North Dakota, Tennessee, Texas, Utah and Wyoming.

Some of these policies ban state funds for diversity-based programs, activities, and offices on college campuses, as seen in Alabama. Some states, like Texas, ban diversity offices at universities altogether. Florida’s law also targets diversity training or programs in private workplaces.

The political push accelerated after a Supreme Court decision last year disallowing affirmative action programs at undergraduate colleges that previously considered a candidate’s race as part of their admissions process.

“We know that politics are elevated in the current climate and we know companies are facing that,” Tammi Wallace, president of the Houston LGBT Chamber of Commerce, an advocacy group that works with corporations headquartered in the area, told ABC News.

“I have heard of some companies that have pulled back DEI budgets,” Wallace added. “That’s probably the biggest impact that we’ve seen.”

Christie Lindor, a diversity strategist and CEO of Tessi Consulting, said she has heard from LGBTQ+ employees frustrated with what they perceive as risk aversion in company programming around issues of gender and sexuality.

“I’ve seen a lot of companies dilute organizational programming,” Lindor told ABC News. “LGBTQ programming is part of that.”

“It definitely has created opportunities where people, especially those in the LGBTQ community, are questioning the authenticity of their organizations,” Lindor added.

Still, executives at large corporations overwhelmingly support DEI initiatives, according to a Morning Consult poll in December. Diversity programs are considered important for business by 82% of executives at companies with 1,000 or more employees, the survey found. More than two-thirds of executives said they expect such programs to become more important in the coming years.

In response to the public scrutiny, some corporations are preserving DEI programs but doing so quietly, Frank Dobbin, a professor of sociology at Harvard University who studies corporate diversity, told ABC News.

“Some companies are changing the names of their DEI activities, so moving them from a focus on equity or diversity to a focus on talent,” Dobbin added.

The political push against DEI places even greater importance on the outward posture of corporations toward the LGBTQ+ community, Dobbin said. 

“It’s a mistake for companies not to continue to express their support, especially in the face of all these people who are leading the charge against any kind of DEI programming,” he said.

Experts who study LGBTQ+ advertising differed about the relative volume of corporate marketing during Pride compared to previous years.

Schwartz described a “pull back” in advertising during Pride as a result of consumer boycotts and a surge of anti-LGBTQ+ political sentiment among some conservatives.

Instead of mass-market advertising and LGBTQ-themed merchandise displays, companies have prioritized targeted ads that are more likely to reach LGBTQ+ customers and less likely to stoke criticism, Schwartz said.

“Companies are finding other ways to connect with this community,” Schwartz said. “They are having to be more careful this year, and will probably have to be more careful for several years.”

Michael Wilke, founder of AdRespect, an archive of LGBTQ+ representation in marketing, disagreed with the assessment of a dropoff in themed advertising. Rather, he added, corporations have largely maintained their advertising, albeit in a quieter fashion.

“We’re in a golden era of inclusion of LGBTQ — and that extends to advertising,” Wilke said.

“In the past year, companies that are staying the course may not be touting that they’re doing so,” he added. “They’re not promoting it to avoid attracting a pile on.”

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