Market Overview

Juul Smokes Out 650 Jobs To Save $1B In Costs Next Year

Juul Smokes Out 650 Jobs To Save $1B In Costs Next Year

Vape maker Juul confirmed Tuesday it will speed up the pace of job cuts from 500 to 650 to save close to $1 billion next year, CNBC reported.

What Happened

Juul plans to eliminate around 16% of its total 4,051-employee workforce, which marks a reversal from its previous pace of hiring 300 employees a month, according to CNBC.

CEO K.C. Crosthwaite said the "necessary reset" will better position Juul to lower underage vape use, invest in scientific research, create new technologies and earn a license to operate in the U.S. and globally.

Why It's Important

Under Crosthwaite's leadership, the company has already decided to abandon sales of mint-flavored vapes.

Crosthwaite joined Juul from Altria Group Inc (NYSE: MO), the tobacco behemoth that owns a 35% stake in the vape manufacturer. 

What's Next

Juul's reorganization could be more noticeable in its marketing, as the company will stop advertising all products in the U.S., CNBC noted.

Juul will still need to submit an application with the Food and Drug Administration before May 2020 to keep its products on the market.

Related Links:

Ex-FDA Chief: Juul Created Teen Vaping Epidemic

Altria Analysts Dissect Q3 Print, Juul Writedown

Photo courtesy of Juul. 

Posted-In: JUUL KC Crosthwaite vape VapingNews Media Best of Benzinga


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