Oct 29, 2019

Juul to cut hundreds of jobs in "reset" effort

Photo: Robyn Beck/AFP/Getty Images

Juul plans to cut around 500 jobs by the end of the year in an attempt to mend the damaged relationship between the company and federal regulators, reports the Wall Street Journal.

Why it matters: The e-cigarette market has been upended by a Trump administration proposal to ban most flavored e-cigarette cartridges amid growing health concerns regarding youth vaping and a warning issued by the CDC against the use of the products.

  • In addition to cutting jobs, Juul will also cut back its marketing budget and invest in programs that attempt to reduce underage vaping.

By the numbers: Juul hired an average of 300 employees a month in 2019, swelling its staff to around 4,000 employees. Around 10% to 15% of Juul's workforce could be eliminated.

  • The company enacted a hiring freeze in last month shortly before the company’s new CEO K.C. Crosthwaite took over.
  • It also suspended all broadcast, print and digital advertising of its products in the U.S.
  • Crosthwaite said in a statement on Monday that the e-cigarette market is undergoing "a necessary reset."

Go deeper: More than 1,600 people report mysterious vaping illness

Go deeper

Juul's very bad, no good rotten year

Illustration: Aïda Amer/Axios

In the past year, Juul has gone from exceeding its 2018 projections and becoming a venture capital fundraising machine to being regulators' favorite punching bag.

Driving the news: Juul, the nation's largest maker of vaping products, announced Thursday it will freeze sales of its popular mint flavor, leaving only menthol and tobacco flavors available, as it tries to stay ahead of the looming crackdown on vaping by the Trump administration.

Go deeperArrowNov 8, 2019

Juul's $1 billion recovery plan

Photo: Justin Sullivan/Getty Images

Juul Labs' new CEO, K.C. Crosthwaite, who joined the company in September, is moving quickly to try to reposition the company amid an onslaught of regulatory, research and business setbacks, a Juul official tells Axios.

Why it matters: The company will unveil Tuesday its plan to cut nearly $1 billion next year, including cuts to marketing and government affairs.

Go deeperArrowNov 12, 2019

Ex-Juul executive alleges firm sent 1M contaminated pods to market

E-cigarettes made by Juul on display at a shop. Photo: Justin Sullivan/Getty Images

A former Juul executive alleged Tuesday in a lawsuit that it sent to market at least "one million mint-flavored e-cigarette nicotine pods that it admits were contaminated." A Juul spokesperson told Axios the company denies the claims and is contesting the suit.

Details: The suit, filed by Dhillon Law Group in the U.S. District Court for the Northern District of California on behalf of Siddharth Breja, Juul's former senior vice president of global finance, alleges Juul ignored his protests to issue a product recall for the contaminated pods, "or at a minimum, issue a public health and safety notice to consumers."

Go deeperArrowUpdated Oct 30, 2019