Juul Announces Plan to Reduce Workforce by Nearly One-Third

Juul Labs, a prominent e-cigarette manufacturer, has announced its intention to implement a workforce reduction of approximately 30%. The company plans to cut costs and optimize profitability through this measure. As a result, around 250 positions will be affected, bringing the total headcount down to approximately 650. A Juul spokesperson has stated that this move will result in a $225 million decrease in operating expenses.

In addition to cost-cutting measures, Juul is currently seeking federal authorization to sustain the sale of its e-cigarette products. The company anticipates that these layoffs will improve margins and generate additional funds for settling pending litigations.

In an official news release, Juul Labs stated, “Today, Juul Labs is announcing a company restructuring aimed at reducing our operating costs and positioning us to continue to advance our mission during a period of regulatory and marketplace uncertainty.”

Last year, the Food and Drug Administration ordered Juul products off the market. However, Juul appealed the decision, resulting in a temporary reversal of the ban. To avoid bankruptcy, the company secured significant financing from early investors and announced plans to lay off approximately one-third of its workforce.

Juul is actively seeking additional capital investment while awaiting a decision from U.S. regulators regarding the fate of its current product line. The company has also faced expensive legal battles, having paid over $1 billion in settlements to 45 states due to its role in the increase in teenage vaping.

Recently, Juul was sued by Altria Group, the parent company of Marlboro, for alleged patent infringement relating to certain e-vapor products owned by subsidiary NJOY. In response to this lawsuit, a Juul spokesperson stated, “We stand behind our intellectual property and will continue to pursue our infringement claims.”