Walmart, the world’s largest retailer, has announced a significant rollback of its diversity, equity, and inclusion (DEI) policies, following pressure from conservative activist Robby Starbuck. The changes, which include halting race and gender-based considerations in supplier contracts, come after Starbuck mobilized his 700,000 followers to boycott the company ahead of Black Friday if the retailer did not alter its approach.

The company’s shift includes winding down the Center for Racial Equity, a non-profit initiative that received $100 million in funding from Walmart in 2020. Additionally, Walmart will scale back some racial equity staff training, reconsider its support for Pride events, and withdraw from rankings by the Human Rights Campaign, an LGBT advocacy group. The retailer also plans to monitor and remove online products deemed inappropriate for children, particularly those related to sexual or transgender content.

Starbuck, a former music video director turned conservative activist, celebrated the changes in a post on X (formerly Twitter), stating, “I’m happy to have secured these changes before Christmas when shoppers have very few large retail brands they can spend money with who aren’t pushing woke policies.” Elon Musk, CEO of Tesla, also weighed in, sharing the news on social media and commenting, “The tide has turned,” signaling his support for the decision.

Walmart, which employs 2.1 million people and has a market valuation of approximately $740 billion, emphasized that it had been reviewing some of its DEI policies before the backlash. The retailer stated, “We are willing to change alongside our associates and customers who represent all of America.” Walmart’s president and CEO, John Furner, explained in an interview with CBS News that the company was committed to ensuring that all customers and associates feel welcome, regardless of their background.

The decision marks a dramatic shift for a company that has made significant strides in sourcing goods from diverse suppliers. In the past financial year, Walmart reported sourcing over $13 billion in goods and services from businesses owned by veterans, people with disabilities, and members of the LGBT community, among others. Walmart’s latest diversity report also revealed that people of color make up about 51% of its U.S. workforce, with 59% of new hires from diverse backgrounds.

However, the move has sparked a mixed response. Conservative activists like Starbuck have praised Walmart’s decision as a victory for corporate neutrality, while others, particularly on platforms like Bluesky, have criticized the retailer for undermining diversity and inclusion efforts. Users on the platform called Walmart “disgusting” and “cowards” following the announcement.

Walmart now faces the challenge of balancing the demands of diverse stakeholders, as it risks alienating customers who support DEI initiatives while trying to appease those who oppose them.

Research conducted by freelancer platform Fiverr has revealed that UK businesses are facing significant financial challenges in 2025, with an expected average revenue loss of £138,000 per business. The study, which surveyed UK business leaders, indicates that a quarter of businesses anticipate losses exceeding £100,000, largely due to the economic pressures arising from Labour’s Autumn Budget.

Despite a modest interest rate cut from the Bank of England, the government’s proposed £40 billion tax hike—half of which will directly affect businesses—has raised concerns among small and medium-sized enterprises (SMEs). Key issues driving anxiety among business leaders include inflation and rising costs (50%), economic instability in the UK (45%), and the broader implications of Labour’s tax policies (37%).

Revenue Declines and Workforce Adjustments

The proposed changes to the budget have sparked widespread fear among businesses, with 54% of respondents citing the current political climate as a major contributor to operational instability. A significant 83% believe that Labour’s policies, coupled with an increase in the national minimum wage, will negatively affect their revenue.

Moreover, 76% of business leaders predict that the tax hikes will impact workers’ pay, and 60% are considering reducing staff or implementing hiring freezes over the next year. These anticipated workforce cuts reflect the mounting financial pressure businesses are under as they adapt to the new fiscal environment.

Optimism Amid Workplace Shifts

Despite the gloomy outlook, there is some optimism among business leaders. A majority (62%) believe that Labour’s focus on improving workers’ rights could have a positive effect on employee mental health, offering a sense of hope in an otherwise turbulent situation.

UK businesses are also open to embracing new workplace trends. Half of those surveyed expressed a willingness to experiment with a four-day work week, although 24% are doubtful it will succeed under Labour’s governance. Additionally, 61% support a return-to-office model of at least three days per week, citing benefits such as improved productivity (61%), enhanced collaboration (40%), and better professional development opportunities (38%).

However, the move to enforce office attendance could have drawbacks, with half of the respondents fearing that return-to-office policies could negatively impact employee retention, and 26% worried about creating friction and lowering morale. Concerns about work-life balance and the potential for higher operational costs were also raised.

Tech Roles in High Demand

In terms of hiring plans for 2025, more than half (55%) of UK businesses intend to expand their workforce, with 33% planning to maintain current staffing levels. A significant portion of this expansion is focused on IT and tech roles, with 48% of businesses prioritizing hires in these fields. Additionally, 24% are targeting positions in artificial intelligence (AI), with businesses willing to offer 45% higher wages to candidates with AI expertise.

Despite the growing demand for tech talent, businesses are scaling back recruitment in other areas. Nearly half (43%) of businesses cited advancements in AI as a reason to reduce hiring, while budget constraints and regulatory changes also influenced their decisions.

The Rise of Freelancers

Freelancers are playing an increasingly important role in helping businesses navigate economic uncertainty. According to the survey, 55% of businesses already integrate freelancers into their teams, with 32% leveraging freelance expertise in AI. Looking ahead, half of business leaders see freelancers as essential to achieving their goals in 2025, with 45% planning to increase their reliance on freelance talent.

Hila Harel, Director of International Growth at Fiverr, noted that freelancers are expected to play a greater role in supporting businesses amid ongoing challenges. “Workplace flexibility is a top priority, and freelancers will be key in helping businesses drive growth and innovation in a challenging economic landscape,” she said.

As UK businesses brace for financial strain in 2025, freelancers are emerging as vital contributors, helping to bridge skills gaps and manage workforce transitions during a period of economic volatility.

LONDON — A recent report by insolvency specialists Begbies Traynor has unveiled a troubling picture of the UK business landscape, revealing that 632,756 companies were at substantial risk of failure in the three months leading up to September. This figure represents a nearly 33% increase compared to the same period last year and a 5% rise from the previous quarter, marking the highest level of business distress recorded since the report’s inception two decades ago.

The Begbies Traynor Red Flag Alert report analyzes key financial indicators, including profit retention, interest coverage ratios, and contingent liabilities. Alarmingly, the current distress levels surpass even those seen during the global financial crisis of 2008.

Rising Distress Across Multiple Sectors

The surge in corporate distress is primarily attributed to a significant 20% increase in utility companies facing the risk of collapse. This situation has been exacerbated by warnings from Moody’s, a leading credit rating agency, about the mounting debt burdens on major water companies, including Thames Water. These firms may struggle to survive unless permitted to significantly increase customer bills.

Other sectors are also feeling the strain, with retailers, particularly in food and drug categories, reporting a 10.4% rise in financial distress. The financial services sector has seen a 9.9% increase, while bars and restaurants recorded an 8.7% uptick in distress levels. Out of the 22 sectors tracked by Begbies Traynor, 21 reported heightened distress in the last quarter.

Conversely, some areas have experienced a decline in critical distress, the most severe form of financial distress tracked in the report. Critical distress dropped by 23%, from 40,613 to 31,201 businesses, with improvements noted in the hotels and accommodation, construction, and real estate sectors.

Impending Budget and Tax Concerns

With Shadow Chancellor Rachel Reeves expected to unveil £40 billion in fiscal changes—including potential capital gains tax increases and the application of national insurance to employers’ pension contributions—concerns are mounting that struggling businesses could be pushed closer to the brink of collapse.

Julie Palmer, a partner at Begbies Traynor, warned that Reeves’s upcoming budget could serve as a tipping point for many firms. “While the prospect of a change of government was seen as a potential catalyst for economic recovery, significant concerns remain about the implications of the next budget,” Palmer said. “Many businesses are likely to face increased employee-related taxes, which could prove damaging for those already teetering on the edge.”

Separate data released by the Insolvency Service on Friday indicated a slight month-on-month increase in company insolvencies, rising by 2% to 1,973 in September. However, this figure represents a 7% decrease compared to the same period last year.

Cautious Business Sentiment

As businesses await the autumn budget, sentiment remains cautious. Jo Streeten, managing director at AECOM, noted that business confidence has weakened since the summer. “While companies are preparing for increased tax burdens, there are hopes that the budget will also introduce policies to stimulate investment and provide more certainty for major infrastructure projects.”

The retail and hospitality sectors, in particular, are expected to bear the brunt of any new fiscal measures, having been severely affected by rising inflation and labor costs over the past year.

Surge in Personal Insolvencies

The financial strain is not confined to businesses; personal insolvencies have surged by 44% over the past year, reaching 10,651 in September. This increase has been largely driven by changes in government policy, notably the removal of the £90 fee required to obtain a debt relief order, designed to help individuals manage unsustainable debt.

As the country braces for the upcoming budget, all eyes will be on how Reeves balances the need for fiscal responsibility with initiatives aimed at fostering economic growth. With record numbers of businesses in distress and rising personal insolvencies, the stakes for the Chancellor’s decisions have never been higher.