U.S. Vape Giant Juul Plans 500 Layoffs by Year-End

According to people familiar with the matter, Juul Labs Inc. plans to lay off about 500 employees by the end of this year, reversing the e-cigarette maker’s rapid expansion. The company has been besieged by a mysterious vaping-related illness and by a proposed government ban on flavored vaping products, which account for more than 80% of its U.S. sales.

The layoffs are part of a broader restructuring aimed at repairing the company’s damaged relationship with regulators. In addition to cutting staff, Juul will also reduce its marketing budget and invest in new methods to curb underage vaping.

The company’s new chief executive, K.C. Crosthwaite, said in a statement on Monday that the vaping market is undergoing a necessary reset. He said Juul’s focus is on securing authorization to operate in the United States and around the world.