Nov 12, 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.

  • 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."

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California AG sues Juul for marketing vape products to youths

California Attorney General Xavier Becerra. Photo: Justin Sullivan/Getty Images

California Attorney General Xavier Becerra announced on Monday that the state is suing Juul Labs Inc. for allegedly targeting teenagers with ads for its e-cigarettes and for failing to warn consumers about the potential health risks associated with using its products, according to the San Francisco Chronicle.

Why it matters: The lawsuit comes just days after Juul announced a $1 billion "recovery plan" that includes cuts to its marketing and government affairs branches, as the company suffers one of its worst years on record.

Go deeperArrowNov 18, 2019

New York sues Juul for marketing products to youths

New York Attorney General Letitia James. Photo: Spencer Platt/Getty Images

New York Attorney General Letitia James filed a suit on Tuesday against Juul Labs for allegedly preying on and misleading teenagers with its ads, and for failing to warn consumers about potential health risks associated with using its products.

The big picture: The lawsuit filed in New York County Supreme Court came just one day after California filed a similar suit against Juul for suggesting its e-cigarettes are a safer option than traditional cigarettes. 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.

Go deeperArrowNov 19, 2019

CDC confirms 2,807 hospital cases of lung injury linked to vaping

Photo: Eva Hambach/AFP/Getty Images

There are 2,807 confirmed hospital cases of lung injury associated with vaping in all 50 states, Washington, D.C. and two U.S. territories, the Centers for Disease Control and Prevention reports as of Feb 18.

What's new: Because of the consistent declines in new EVALI cases since Sept. 2019, as well as the identification of vitamin E acetate as a primary cause of EVALI, Tuesday's report will be the final CDC update on the number of hospitalized EVALI cases and deaths nationally.

Go deeperArrowUpdated Feb 25, 2020 - Health