Juul plans layoff of over 500 jobs amid increasing regulatory scrutiny
Date: 2019-10-29   Author: Paroma Bhattacharya  Category: #news

Juul plans layoff of over 500 jobs amid increasing regulatory scrutiny

San Francisco-based e-cigarette manufacturer has reportedly planned to cut over 500 jobs by the end of 2019, according to a report, citing authentic sources with knowledge about the matter.

These cuts come along the heels of a hiring spree undertaken by the company earlier this year, with an average of 300 hires each month, causing the staff strength to swell to more than 4000 employees. Following this, there was a hiring freeze enacted in the month of September, just prior to the appointment of Mr. Crosthwaite.

According to K.C. Crosthwaite, the newly-appointed CEO of Juul, this decision is considered to be a “necessary reset” for the e-cigarette manufacturer. He further added that the firm is shifting focus towards running licensed operations across the U.S as well as globally.

It has been speculated that these lay-offs are a part of a larger plan for reorganization, undertaken to appease scrutiny from regulators. The company is also planning budget cuts in the marketing department and higher investments towards curbing underage vaping.

Juul has planned to suspend the sale of fruity e-cigarette flavors, prior to the anticipated removal of all flavored e-cigarette products from the market by the Trump Administration. Alex Azar, Health and Human Services Secretary has reportedly stated to CNBC, that this suspension will not dissuade the Trump Administration’s strategy for e-cigarette removal.

The Food and Drug Administration (FDA) is at this time planning a review of tobacco flavors, putting forward a rule in the previous year that has garnered over 525,000 comments to date. FDA’s Center for Tobacco Products Director, Mitch Zeller has apparently commented on the administration’s persistent efforts towards the flavor ban.

Juul’s e-cigarette product portfolio, including flavors like crème, mango, fruit, cucumber as well as mint and menthol, reportedly held over 80% of retail sales in the U.S market prior to the initiation of statewide vaping bans earlier in the year.

A spokesperson from Juul has seemingly confirmed the employee layoffs but has declined to specify the number of cuts.

Source Credit: https://www.msn.com/en-us/money/companies/juul-plans-to-cut-about-500-jobs-by-the-end-of-the-year-report-says/ar-AAJv7nE?li=BBnbfcL



About Author


Paroma Bhattacharya

Paroma Bhattacharya

Paroma currently works as a content developer for AlgosOnline. Fortified with a post-graduation degree in Journalism and Mass Communication, she delved head long into a writing career, creating resourceful and information enriched content in diverse fields. Apart from...

Read More

More from Paroma


Post Recommendents

CPR Masks Market Share Worldwide Industry Growth, Size, Statistics, Opportunities & Forecasts up to 2025
Author: Sachin Pashte

In the latest report on ' CPR Masks Market', added by Market Study Report, LLC, a concise analysis on the recent industry trends is covered. The report further includes statistics, market forecasts and revenue estimations, that in addition highlig...


Portable CPR Devices Market Segmented by Product, Top Manufacturers, Geography Trends & Forecasts to 2025
Author: Sachin Pashte

Market Study Report, LLC adds latest research report on ' Portable CPR Devices Market', which delivers a comprehensive study on current industry trends. The outcome also includes revenue forecasts, statistics, market valuations which illustrates i...


Hemorrhagic Stroke Treatment Market Incredible Possibilities, Growth Analysis and Forecast To 2025
Author: Sachin Pashte

The ' Hemorrhagic Stroke Treatment market' study added by Market Study Report, LLC, enumerates an in-depth analysis of the powerful trends prevailing in the industry. This study also encompasses valuable information relating to the profitability p...