Juul's $1 billion recovery plan
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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.
- Starting today, Juul will lay off about 650 of its 4,051 employees (16%), across most departments and countries, per the company official.
The plan's key elements: "Earning trust by reducing and preventing underage use, investing in scientific research ... and expanding our commitment to develop new technology to reduce youth usage."
What the company did earlier: "Limited product we sell in the U.S. to just Tobacco and Menthol ... Suspended all broadcast, print, and digital product advertising in the U.S. ... Ceased active support of Proposition C in San Francisco."
- Crosthwaite said: "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."