The Strategist

Juul to lay off a third of employees

04/30/2020 - 03:03

Juul Labs plans to cut about a third of its staff for several reasons, including due to the fact that the manufacturer of electronic cigarettes is facing close attention from regulatory authorities, according to The Wall Street Journal (WSJ).

Possible reductions, which will affect 800 to 950 people, are part of a broader restructuring plan and are not related to the coronavirus pandemic, WSJ reports citing a source.

Juul did not immediately respond to Reuters' request for comment. Last November, the company’s spokesman told the agency that Juul would cut about 650 jobs, or 16%, out of 4,051 people as part of a restructuring plan.

Earlier, the U.S. Federal Trade Commission (FTC) challenged the acquisition by Altria, a tobacco company, of its stake in electronic cigarette maker Juul Labs in 2018. According to the FTC, this purchase prevents fair competition in the market of electronic cigarettes.

Altria bought a 35 percent stake in Juul for $ 12.8 billion at the end of 2018. Since then, the value has fallen to $ 4.2 billion due to several lawsuits against Juul and e-cigarette scandals in the US.