Evolution VC Partners’ and early Juul investor Gregg Smith discusses Juul’s decision to pull flavored products from the market.
Juul will be letting go up to 500 people by the end of 2019, somewhere between 10% and 15% of its workforce, The Wall Street Journal reports.
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The company confirmed that layoffs are coming, telling FOX Business that it had been hiring 300 people a month during this year until September.
“As the vapor category undergoes a necessary reset, this reorganization will help JUUL Labs focus on reducing underage use, investing in scientific research, and creating new technologies while earning a license to operate in the U.S. and around the world,” new Juul CEO K.C. Crosthwaite said in the statement.
FILE – In this Dec. 20, 2018, file photo Juul products are displayed at a smoke shop in New York. (AP Photo/Seth Wenig, File)
These proposed cuts reflect the hard reality facing Juul as the Trump administration preps a ban on flavored vaping juices, which will reportedly eradicate as much as 80% of its U.S. sales market, the Journal reports.
When Crosthwaite took over, the company announced several new initiatives meant to calm the increasing legal, governmental, public and media maelstrom over vaping-related deaths, including stopping all U.S. advertising.
JUUL SUSPENDS POPULAR VAPING FLAVORS
Juul is currently the target of various state and federal investigations for allegedly marketing its products to underage consumers.
“To right-size the business, the workforce will be reduced between now and the end of the year,” the company said. “The reduction will be across various departments while some will continue to grow including teams working on PMTA and product.”
