U.S. E-cigarette Manufacturer Juul Labs to Cut 30% of Workforce

According to Reuters, the second-largest e-cigarette manufacturer in the U.S., JUUL Labs, plans to cut 30% of its workforce in an effort to reduce operating costs and maximize profitability and cash flow. Sources say that Juul will lay off about 250 employees, reducing its workforce to around 650, which will save $225 million in operating expenses.

At the peak of its development, Juul had more than 4,000 employees.

Over the past year, Juul has faced immense pressure and has had to deal with lawsuits related to e-cigarette marketing. In April of this year, the company agreed to pay $462 million over eight years to settle allegations from six U.S. states, including New York and California, regarding its illegal sales of e-cigarette products to minors.

On Tuesday, Marlboro manufacturer Altria Group announced that its subsidiary NJOY has filed a lawsuit against Juul with the U.S. International Trade Commission, seeking to ban the import and sale of Juul products.

Last month, Juul submitted a PMTA authorization application for a next-generation e-cigarette to the U.S. FDA. Currently, Juul is awaiting the FDA's final decision on whether its products can continue to be sold in the U.S. market.