Home » US business news • US Employment News » E-cigarette maker Juul cuts 250 jobs in profitability push
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Juul has announced plans to slash its workforce by almost 30 percent to cut costs and enhance profitability.
A company spokesperson said the layoffs would hit around 250 employees, reducing its headcount to nearly 650.
This effort would reduce operating expenses by $225 million.
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Juul Labs seeks federal authorization to keep its e-cigarette products on the market.
The vape maker believes these layoffs will improve profit margins and generate funds for litigation settlements.
Juul said: “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 (FDA) ordered Juul to remove its products from the market.
However, the ban was temporarily lifted after Juul appealed.
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The company secured additional financing from early investors, preventing bankruptcy.
They also disclosed plans to reduce their workforce by nearly one-third at that time.
Since then, Juul has been trying to raise capital from investors.
It’s awaiting a regulatory decision from US authorities regarding its current product lineup.
Juul was caught in expensive legal battles.
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The company has settled lawsuits with 45 US states for its alleged role in the increase in teenage vaping in the country.
It’s facing a patent infringement lawsuit filed by Altria Group, the maker of Marlboro cigarettes, which previously held a major stake in Juul.
The lawsuit concerns to alleged patent violations concerning specific e-vapor products owned by the subsidiary NJOY.
Responding to the lawsuit, a Juul spokesperson said: "We stand behind our intellectual property and will continue to pursue our infringement claims."
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