Juul Labs to Reduce Its Workforce by More Than Half

The manufacturer of the most infamous e-cigarette across the globe, has announced plans to reduce its 2,200-person staff down to about 1,000 in a bid to cut costs during the current tumultuous period.

Diane Caruana

September 15, 2020

Last week Juul Labs Inc. announced that it is planning to lay off more than half of its employees. The cuts will amount to about 1,200 employees. “No final decisions have been made and we will continue to go through our evaluation process,” a Juul spokesman said.

Juul may be halting sales across Europe and Asia, shrinking the startup’s footprint to its core markets, the U.S., Canada and the U.K.

The firm is also considering halting its sales across Europe and Asia. Retreating from these regions would mean stopping sales in as many as eleven countries and shrinking the startup’s footprint to its core markets, the U.S., Canada and the U.K. Juul explained that some European and Asia Pacific markets did not yield enough returns to justify additional investments. Earlier this year, pulled out of South Korea after failing to gain traction.

Up until 2019, the San Francisco-based firm had employed approximately 4,100 people. However in November it had announced plans to cut approximately 500 jobs, which were thought to represent about 10 to 15% of its workforce. “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,” said CEO K.C. Crosthwaite in a statement last November.

Juul halted flavours’ sales and reduced marketing budget

Additionally, in the following months Juul had also announced that it would stop selling its flavoured pods (with the exception of mint and menthol). “We continue to review our policies and practices in advance of FDA’s flavor guidance and have not made any final decisions,” Juul spokesman Austin Finan said at the time. “We are refraining from lobbying the administration on its draft flavor guidance and will fully support and comply with the final policy when effective.” The manufacturer had also reduced its marketing budget and invested heavily in ways to limit underage vaping.

Meanwhile in the US, e-cigarette sales have been dwindling due to the incessant scrutiny and misinformation surrounding the industry. “It has seemingly become even easier to sell combustible cigarettes than vapor products,” said Juul in a blog post.

Read Further: Reuters