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WSJ: Juul Plans to Cut a Third of Its Workforce

WSJ: Juul Plans to Cut a Third of Its Workforce
(Steveheap/Dreamstime)

Wednesday, 29 April 2020 01:18 PM EDT

Juul Labs Inc. is planning to cut around a third of its staff as the e-cigarette maker faces a relentless series of regulatory headaches and falling market share, the Wall Street Journal reported on Wednesday.

The cuts, which translate into between 800 and 950 people, are part of a broader restructuring plan and are not related to the novel coronavirus pandemic, the Journal reported,  citing a person familiar with the matter.

"As part of our ongoing reset, we are constantly evaluating our operations and the best way to position our company for the long," a Juul spokesman said.

Last November, a company official told Reuters said Juul would cut around 650 jobs, or 16%, of its then 4,051 strong workforce as part of Chief Executive Officer K.C. Crosthwaite's turnaround plan. 

The WSJ report comes just days after the U.S. Food and Drug Administration (FDA) warned 10 manufacturers and retailers against selling or producing products likely to promote e-cigarette use among teenagers.

The FDA in the past few years has cracked down on the sale of e-cigarettes and tobacco products to minors, particularly those developed by Altria Group-owned Juul Labs, but is yet to pass any industry-wide restrictions.

The agency's letters to Vaprwear Gear LLC, Vapewear LLC, Wizman Ltd, EightCig LLC, Ejuicepack LLC, Vape Royalty LLC, VapeCentric Inc., Dukhan Store, VapeSourcing, and Shenzhen Uwell Technology Co Ltd warned them against marketing products such as a backpack or a sweatshirt designed with stealth pockets to hold and conceal an e-cigarette.

"The FDA is disturbed by some of these new products being marketed to children and teens by promoting the ease with which they can be used to conceal product use," said Mitch Zeller, director of the FDA's Center for Tobacco Products.

The FDA also said it was against the firms selling vaping liquids that imitate food flavors such as candy or feature popular cartoon characters such as SpongeBob SquarePants.

According to CDC data, teens and adults under 25 accounted for all of the growth in e-cigarette use between 2015 and 2018. Use of e-cigarettes by high-school students shot up by 78% between 2017 and 2018, data from the CDC and the FDA show.

© 2026 Thomson/Reuters. All rights reserved.


Companies
Juul Labs is planning to cut around a third of its staff as the e-cigarette maker faces a relentless series of regulatory headaches and falling market share, the Wall Street Journal reported on Wednesday.
juul, cut, third, workforce
361
2020-18-29
Wednesday, 29 April 2020 01:18 PM
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