Tobacco firm Reynolds rolls back DEI plans after activist attack

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Reynolds American Inc., the 150-year-old maker of Camel cigarettes and Vuse vapes, said it is rolling back U.S. diversity, equity and inclusion programs, two weeks after anti-DEI crusader Robby Starbuck singled out the company for action.

Reynolds, which was purchased by London-listed British American Tobacco Plc in 2017, will cease participation in the Human Rights Campaign Foundation’s Corporate Equality Index which measures LGBTQ workplace practices, end sponsorship of Pride events, and end affirmative action programs that were mandated by President Joe Biden’s administration, the company said in a letter to employees Wednesday that was shared with Bloomberg.

Starbuck announced the rollback on social media and the company confirmed it worked with the activist on timing and communication after he launched his attack, although it said many changes were already under consideration.

“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, said in the letter.

Reynolds is among dozens of mostly American companies that have announced plans to scale back or end DEI programs over the last year, first under pressure from activists and other conservatives and more recently President Donald Trump. The president issued a series of executive orders in January that banned DEI in the federal government and seeks to identify “illegal DEI” in companies and organizations.

The company said in the letter that it dropped affirmative action programs, other than those for veterans or disabled employees, that were in effect under the Biden administration and removed by Trump. It also said that it will end mandatory trainings that focused largely on what it called “DEI issues” and is reviewing healthcare policies related to gender affirming care for minor dependents. It does not currently offer coverage for gender affirming surgery for minors.

The company will also end its allyship guide and instead maintain a “focus on building a supportive workplace for all employees.”

A Reynolds subsidiary gave $8.5 million to the super political action committee Make America Great Again Inc., according to federal records first reported by the Washington Post. The cigarette maker confirmed to Bloomberg that it also gave $1 million for the inauguration ball, which was attended by a company representative.

Within days of starting his second term, Trump withdrew a proposed ban on menthol cigarettes and flavored cigars, boosting shares of tobacco companies. Reynolds’ main manufacturing base is in Tobaccoville, North Carolina, where it has invested $200 million to increase manufacturing during 2024 and 2025.

— With assistance from Sabah Meddings.