Juul to Cut Up to 40% of Workforce in New Round of Reductions
Juul Labs Inc. is preparing to cut 25% to 40% of its workforce, according to a person familiar with the matter, in the latest round of layoffs at the e-cigarette company.
The San Francisco-based company currently employs about 3,000 people after slashing about 650 jobs late last year. It could cut between 800 to 950 people in the latest round, the person said.
The Wall Street Journal earlier reported the planned cuts.
“As part of our ongoing reset, we are constantly evaluating our operations and the best way to position our company for the long term,” Juul said in a statement. The company said it had “nothing to announce at this time.”
Juul is downsizing amid scrutiny from regulators and shrinking sales. The company stopped selling its sweet flavors, including mint and mango, last year. Public-health groups and regulators have blamed Juul for fueling a teen vaping crisis. The company has said it never targeted minors in its marketing or promotions.
Last September, Juul hired longtimeAltria Group Inc. executive K.C. Crosthwaite as its chief executive officer to help turn around the company.
“We remain focused on earning the trust of our stakeholders to advance the potential for harm reduction for adult smokers while combating underage use,” the company said.
Juul’s sales have fallen about 10% over the past year, according to data from market research firm IRI. The company still holds 60% of the e-cigarette market in IRI-tracked stores.
Federal antitrust regulators earlier this monthsued to unwind tobacco giantAltria Group Inc.’s 35% stake in Juul. Altria has twice written down the $12.8 billion investment, valuing the stake at $4.2 billion in January.
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