The crisis engulfing Boston Consulting Group over its involvement with a humanitarian project in Gaza deepened Thursday when the firm announced two senior partners were stepping down from leadership roles over their connection to the work.

The firm got involved last fall in an effort that became a widely criticized Israeli-backed aid-distribution initiative that resulted in hundreds of Palestinians being killed by troops. It has spiraled into the most significant crisis in BCG’s roughly six-decade history.

Long-term clients are expressing outrage. Employees and BCG alumni are pointing fingers, asking how one of the best-known corporate advisory firms ever got involved in Gaza in the first place.

The project began as a pro bono effort to help solve food-supply challenges in Gaza. The firm says it turned into an unauthorized project by two other partners against the firm’s instructions. That work included a postwar financial model to voluntarily relocate Palestinians.

In the latest leadership shuffle, BCG’s chief risk officer, Adam Farber, and the head of its social-impact practice, Rich Hutchinson, will no longer serve in those roles but remain as senior partners. According to people familiar with the matter, both were aware of early phases of the work but not all of the details.

📈 Economic Indicators

The Treasury Department releases the U.S. budget statement for June.

Conagra Brands expects organic sales to remain stagnant as Chief Executive Sean Connolly said the challenging environment in which the company has been operating isn’t going to improve soon.

The food-and-snacks company behind Vlasic pickles and Snack Pack pudding cups said Thursday that inflation, supply challenges, foreign-exchange headwinds and weakening consumer sentiment continued to weigh on results.

Conagra said that it expected inflation to be elevated in its current fiscal year because of higher costs for goods such as proteins, cocoa and eggs, and the imposition of tariffs on steel and aluminum, which affect the company’s canned products. The company said it would work to offset those costs by looking for alternative sources and “targeted price adjustments.”

📰 Other headlines

• Trump Threatens 35% Tariff on Some Canadian Goods
• Ford Breaks Annual Record for Safety Recalls Within First Six Months of Year
• Air India Probe Puts Early Focus on Pilots’ Actions and Plane’s Fuel Switches
• Unilever Picks New Ben & Jerry’s CEO, Escalating Dispute With Independent Board
• Dow Leads Indexes Higher
• U.S. Jobless Claims Fell Last Week
• Ferrero Strikes Roughly $3 Billion Deal for Maker of Froot Loops, Frosted Flakes
• Delta Air Lines Shares Jump Despite Travel Slowdown
• Pentagon to Take Stake in Rare-Earth Company, Challenging China’s Control
• Bill Ackman’s Pro-Tennis Debut Lasted 67 Minutes
• Levi Strauss Raises Fiscal-Year Outlook on Resilient Direct-to-Consumer Sales
• Thieves Target Copper by the Truckload as Prices Rise
• Brunello Cucinelli Logs Robust Growth as Wider Luxury Sector Navigates Uncertainty
• Some of the ‘Big, Beautiful’ Tax Breaks Are Smaller Than You Think

• The private-equity industry has almost all the pieces in place to start managing Americans’ 401(k) money—everything but the customers.
• A failed GOP effort to block a jumble of state AI privacy and security laws has developers calling for “consistent standards.”
• It’s never been easier to create your own app with “vibe coding.” Now, professional software engineers are bringing it into the enterprise.
• Some creators say their work has been wrongly tagged as AI on tech platforms, hurting their reputation, while some all-artificial ads get through undisclosed.

Toll Brothers, the Fort Washington, Pa.-based home-building company, appointed Gregg Ziegler to be CFO of the company, effective Oct. 31. Ziegler succeeds Marty Connor, who will continue to serve as a senior adviser for one year, the company said on Thursday. In that role he will provide strategic advice to Ziegler and the executive team, the company added. Ziegler joined Toll Brothers in 2002, and most recently served as treasurer and head of the investor relations department. He will report directly to Chairman and Chief Executive Douglas Yearley Jr.

—Natalie Weger contributed to today’s Ledger.

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