U.S. e-cigarette giant Juul announces 650 job cuts, cuts $1 billion in costs

U.S. e-cigarette giant Juul today unveiled its latest restructuring plan, which includes increasing the number of job cuts from 500 to 650. The e-cigarette industry is currently facing Waterloo because of widespread health problems in markets such as the United States. On October 29th Juul announced that it would cut 500 jobs by the end of the year. Meanwhile, the company’s chief financial officer (CFO) and chief marketing officer (CMO) will soon leave.

U.S. e-cigarette giant Juul announces 650 job cuts, cuts $1 billion in costs

Today, Juul unveiled its latest restructuring plan. As part of a plan to cut costs by nearly $1 billion next year, Juul is increasing the number of job cuts from 500 to 650, or about 16 percent of the company’s 4,051 employees.

Since the beginning of the year, Juul has added an average of 300 employees per month, and its total number now exceeds 4,000. In September, Kevin Burns, Juul’s CHIEF executive, resigned from his position as a former executive at Altria, the world’s largest multinational tobacco company. C.C. Crosthwaite succeeds him.

As of October 15, there were 1,479 cases of acute lung injury associated with e-cigarettes in the U.S., killing at least 33 people in 22 states, the youngest being just 17 years old, according to the Centers for Disease Control and Prevention.

U.S. President Donald Trump told reporters outside the White House on Friday that the administration plans to raise the minimum age for buying e-cigarettes to around 21 as part of a plan to curb smoking among teenagers.

Juul announced in September that it would suspend all advertising of all broadcast, print and digital products in the United States. Juul said today that future advertising will be dominated by direct sales.

Juul said in a statement that it will continue to invest in the product team in the future as the company continues to explore new technologies to curb the use of e-cigarettes by minors. For example, Juul is developing a Bluetooth-connected smoking device.

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