Reynolds American ends DEI initiatives after activist pressure

Published 18/06/2025, 16:14
© Reuters.

Investing.com -- Reynolds American Inc (NYSE:RAI)., the maker of Camel cigarettes and Vuse vapes, said Wednesday it is discontinuing its diversity, equity and inclusion programs following discussions with anti-DEI activist Robby Starbuck.

The 150-year-old tobacco company, owned by British American Tobacco Plc (NYSE:BTI) since 2017, outlined several policy changes in an employee letter shared with and reported on by Bloomberg. Reynolds will stop participating in the Human Rights Campaign Foundation’s Corporate Equality Index, which evaluates LGBTQ workplace practices, and will no longer sponsor Pride events.

The company also plans to end affirmative action programs previously required under President Joe Biden’s administration. Additional changes include eliminating DEI goals, trainings, and the company’s "Allyship guide."

Reynolds will adopt a policy of "corporate neutrality on divisive topics" and conduct a company-wide audit to remove what it considers bias or divisive activism. The headquarters building will no longer be illuminated for Pride month, and the company will implement oversight of employee resource group activities.

"We respect differing opinions, but we are taking these steps because they are necessary to ensure the company’s and our employees’ success," David Waterfield, president and CEO of Reynolds, wrote in the letter.

Starbuck, who had previously targeted Reynolds for its "woke policies," confirmed the changes on social media, noting that the company will now emphasize merit as its focus. Reynolds American’s brand portfolio includes Camel, Newport, Lucky Strike, Pall Mall, American Spirit, and Grizzly.

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