Juul Will Wipe Out 650 Workers To Slice $1 Billion in Costs

Juul Will Wipe Out 650 Workers to Slice $1 Billion in Costs

Business

After pulling back mint-flavored pods from the market, Juul is back with another announcement. A company official has announced on Tuesday; the vaping giant will lay off 650 workers, more from the formerly planned 500 jobs. As per the executive, the move will assist the company in cutting around $1 billion in costs of the upcoming year. Notably, the dismissal action represents 16% of the Juul’s workforce, which includes 4051 employees. Before this, the swiftly-growing start-up company had been recruiting around 300 workers every month. Now, Juul has decided to cut marketing expenses as the company stops the advertising of all products in the U.S. It had announced the news in September. The Juul executive noted on Thursday; the remaining workforce will concentrate on direct advertising to smokers.

K.C. Crosthwaite, Juul’s new CEO, said as the vapor section is going through an obligatory restart, this reformation will assist Juul Labs target lessening underage use. Even more, the effort will help the company to invest in clinical trials and developing new technologies while gaining approval to sell its products in the U.S. and across the globe. It seems like, Juul is attempting to rebuild its image from a company that has faced criticism for fueling a teen vaping outbreak. The vaping giant has replaced CEO Kevin Burns with long-term tobacco supervisor Crosthwaite in September. Even more, last month, Crosthwaite had announced the exit of four executives. The list included the chief financial officer, chief administrative officer, chief marketing officer, and senior vice president of advanced technologies.

Now, Crosthwaite is attempting to situate Juul as a responsible company. Recently, the vaping giant has stopped selling e-cigs of mint flavor. The decision arrived after a study revealed mint as the most famous flavor among high school students. Even more, Juul has also pulled other sweet flavors from its web portal. The move arrives nearly a year after it pulled the flavors from vape shops, convenience stores, and other dispensers. On the other hand, many states are moving ahead to ban e-cigarettes collectively, along with retailers like Walmart. Meanwhile, the CDC has reported around 2000 cases of the vaping-related illness.