Skip to content
Search
AI Powered
Latest Stories

Juul announces job cuts in efforts to reduce costs

Juul announces job cuts in efforts to reduce costs
Packages of Juul e-cigarettes are displayed for sale in the Brazil Outlet shop on June 22, 2022 in Los Angeles, California. (Photo by Mario Tama/Getty Images)
Getty Images

Juul Labs on Wednesday announced a company restructuring aimed at reducing operating costs which will see the e-cigarettes maker ‘substantially reducing’ its workforce.

While the company didn’t reveal any number, reports said 30 per cent of the staff would be affected.


The restructuring is aimed at maximising profitability and cash-flow generation, while continuing to invest in its core priorities, the company said in a statement.

Juul has announced job cuts in November last year, as it secured financing to stay afloat. The company had then planned to lay off around 400 employees while cutting its operating budget by up to 40 percent.

The fresh round of job cuts would see it laying off around 250 people, bringing its headcount to around 650, and reduce operating expenses by $225 million, reports said.

“As difficult as this moment is, we remain fundamentally optimistic about the prospects for JLI – a view rooted in our belief that our technology and our pipeline of new innovations represent the most valuable ever brought forward to transition adult smokers away from cigarettes while combating underage use,” the company said in the statement.

Juul has been under pressure over the past year, as it has had to deal with lawsuits related to marketing of its e-cigarettes.

The company in April has agreed to pay $462 million (£370m) to six states and the District of Columbia to settle charges that it violated numerous laws in marketing tobacco products to youth.

The agreement followed an earlier $438.5 million Juul settlement with 34 different US states.

On Tuesday Altria Group said its subsidiary NJOY has filed a complaint against Juul Labs with the US International Trade Commission (ITC), seeking a ban on the import and sale of certain JUUL products, alleges that the products infringe certain patents owned by NJOY.

Last year, the FDA has banned the sale of all currently marketed JUUL products in the US market after finding the vaping giant had failed to address certain safety concerns.

Juul has immediately secured a court stay on the ales ban and the regulator itself put its decision on hold later, saying there are scientific issues unique to the Juul application that warrant additional review. Juul’s administrative appeal is still pending.

Meanwhile, Juul is looking to bring its next-generation vapour platform, JUUL2 System, which is launched in the UK in 2021, to the US market, and the company has filed a Premarket Tobacco Product Application (PMTA) for the product to the FDA in July.

Juul said by increasing adjusted EBITDA margins and generating meaningful free cash flow before litigation settlements, the latest operating cost reductions will help reduce the need to access capital pre-PMTA, extend the time horizon to continue the pursuit of market orders from FDA and generate positive equity value.

More for you

Glenshire Group appoints Dan Arrandale as property director

Glenshire Group appoints Dan Arrandale as property director

Scottish business conglomerate Glenshire Group has hired Daniel Arrandale as its new Property Director.

Starting in the newly created role last week, Arrandale brings a wealth of industry experience to the business, including his most recent position as Acquisitions Manager for Asda and his previous position as Development Manager at EG Group.

Keep ReadingShow less
Carlsberg Zero
Competition watchdog begins Carlsberg, Britvic merger probe
Competition watchdog begins Carlsberg, Britvic merger probe

Carlsberg shifts marketing focus as drinkers choose cheaper beer

Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.

The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.

Keep ReadingShow less
sustainability, zero waste store, refil lzone
Photo: iStock
Photo: iStock

Consumers value ethics though 'sustainability needs to be competitively priced'

Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.

According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.

Keep ReadingShow less
Sugro-Wn-News.png
Sugro UK
Sugro UK

Sugro UK unveils new B2B digital enhancements to empower members, retailers

Sugro UK, the number one buying and marketing buying group*, in partnership with b2b.store, is thrilled to announce a further expansion of its existing E-Loyalty scheme programme, which has proven to be very popular with its members and retailers, by introducing E-Loyalty Extra Compliance and Execution scheme as well as E-Coupons.

The E-Loyalty Extra is aimed to boost compliance and execution at retail store level to drive new product launches, core range compliance, some exciting fixture trials with its supply partners and more! It will be available to all member owned and member affiliated retail stores within the group.

Keep ReadingShow less
Paulig acquires Panesar Foods

iStock image

Paulig acquires Panesar Foods

Expanding its footprint in the World Foods category, Paulig has acquired Panesar Foods, a prominent UK-based producer of sauces and condiments.

Founded in 1992 and headquartered in Tipton, Panesar Foods is a family-owned business with three production facilities, employing 308 staff and achieving a turnover of £59 million in the 2023 fiscal year.

Keep ReadingShow less