Vaping firm Juul plans to lay off 30% of staff in bid to cut costs

The company plans to lay off about 250 people in its latest round of cuts, reducing its workforce to around 650

Juul had been preparing to file for bankruptcy in the US before it got a financial lifeline in November from longtime shareholders Nick Pritzker and Riaz Valani. Picture: Getty

Wed, 23 Aug, 2023 - 19:00

Vaping firm Juul Labs is planning to lay off 30% of its workforce as it looks to cut costs, the Wall Street Journal has reported.

The company plans to lay off about 250 people in its latest round of cuts, reducing its workforce to around 650, the report said.

The cuts will reduce operating expenses by $225m, the paper reported, citing a company spokesperson.

The company is awaiting a decision from US regulators on whether it can continue to sell its products in the US.

Juul, which almost went bankrupt last year, was seeking to raise about $1bn, Bloomberg reported last month, after generating about $800m in revenue in 2022.

Juul’s stock market valuation has collapsed from the $38bn it was worth in 2018 when Altria Group invested in it. Altria divested its stake earlier this year.

Juul had been preparing to file for bankruptcy in the US before it got a financial lifeline in November from longtime shareholders Nick Pritzker and Riaz Valani. As part of that plan, the company planned to cut jobs and slash its operating budget as part of a reorganisation.

The company’s problems have included a barrage of lawsuits alleging that it targeted minors in its marketing. The number of e-cigarette products sold in the US increased 47% over an almost three-year period.