Vaping Giant Juul Cuts 30% of Staff to Reduce Costs

A source familiar with the matter told Reuters on Wednesday that JUUL Labs plans to cut 30% of its workforce as the vaping manufacturer looks to reduce operating costs.

The company said in a statement that the restructuring is intended to maximize profitability and cash flow generation, adding that it will significantly reduce headcount to carry out its strategy.

The company plans to cut about 250 jobs in its latest round of layoffs

The vaping manufacturer joins a number of U.S. companies that have announced layoffs this year to control costs amid persistently high inflation and rising interest rates.

According to the source, Juul will lay off about 250 employees, reducing its workforce to around 650.

The Wall Street Journal first reported the news earlier on Wednesday. Last year, the once high-flying vaping company had planned to cut about 400 jobs and reduce its operating budget by 30% to 40% as part of a restructuring aimed at avoiding a possible bankruptcy filing.

According to a Wall Street Journal report on Wednesday citing a company spokesperson, the new round of layoffs will reduce operating expenses by $225 million.

Juul has also been under pressure over the past year as it dealt with litigation related to the marketing of its vaping products.

In April this year, the company agreed to pay $225 million over eight years to settle claims brought by six states, including New York and California, as well as the District of Columbia, alleging that it illegally marketed its addictive products to minors.

On Tuesday, Marlboro maker Altria Group said its subsidiary NJOY had filed a complaint with the U.S. International Trade Commission against Juul, seeking to ban the import and sale of Juul products.