Juul Labs Inc. is set to cut around 500 jobs by the end of year as part of a company reorganization as it braces for bans on the flavors that make up more than 80 percent of its U.S. sales.
Juul could eliminate between 10 percent to 15 percent of its staff, according to people familiar with the matter. The company has added around 300 employees a month this year, growing its staff to more than 4,000 employees.
The cuts come ahead of a larger reorganization process meant to roll back the company’s marketing budget and create new ways to reduce underage vaping.
Juul is going through a “necessary reset” and focusing on “earning a license to operate in the U.S. and around the world,” said K.C. Crosthwaite, the company’s new chief executive, in a statement on Monday.
Juul has largely been blamed in a rise in youth vaping.
🔦 The use of e-cigarettes has been linked to 34 deaths and more than 1,600 lung illnesses nationwide.