E-cigarette maker Juul Labs Inc. mentioned it’s planning one other vital spherical of layoffs and contemplating halting gross sales throughout Europe and Asia. That would imply pulling out of as many as 11 nations and shrinking the startup’s footprint to its core markets of the U.S., Canada and the U.Okay.
Juul minimize about one-third of its 3,000 staff earlier this yr and already has halted gross sales of its vaporizers in a number of nations. The as soon as fast-growing firm has been scaling again its operations to fight a pointy drop in gross sales. It at the moment has about 2,200 staff.
Extensively blamed by mother and father and authorities officers for a surge in teen vaping within the U.S., Juul has confronted regulatory crackdowns and investigations into its advertising practices over previous two years. Now its gross sales are falling as Reynolds American Inc.’s Vuse e-cigarette model positive factors market share and a few vapers swap again to conventional cigarettes.
Juul Chief Govt Okay.C. Crosthwaite instructed staff in an electronic mail Wednesday that the enterprise models beneath evaluation don’t generate sufficient income to help additional spending there. He mentioned the cuts would enable the corporate to spend money on creating new merchandise, in expertise to curb youth use and in scientific analysis that would assist the corporate show to regulators that its merchandise are much less dangerous than cigarettes. Juul has submitted to the Meals and Drug Administration a brand new model of its vaporizer designed to unlock just for customers a minimum of 21 years outdated, in response to individuals aware of the matter.
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