Juul is set to eliminate between 800 to 950 jobs, according to a new report from The Wall Street Journal. Those massive cuts would amount to around a third of the Bay Area vaping giant’s entire workforce.
While the news comes amid a deluge of layoff reports, Juul’s troubles are said not to be a direct result from the COVID-19 pandemic. Rather, they stem from larger ongoing problems. After all, it wouldn’t be the first time the company has made a sizable cut to its staff — in October, it laid off around 650 people.
Juul wouldn’t confirm the specifics of the news, but does appear to acknowledge some big changes are afoot, as the company looks to restructure after struggles. “As part of our ongoing reset, we are constantly evaluating our operations and the best way to position our company for the long term,” it said in a statement. “We remain focused on earning the trust of our stakeholders to advance the potential for harm reduction for adult smokers while combating underage use.” According to reports, some of that evaluation comes in the form of figuring just how many jobs to cut. Figures are likely to be somewhere between one-quarter and 40% of its staff. A final decision will arrive “in the coming weeks.”
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A memo leaked to the press notes similar sentiments from CEO K.C. Crosthwaite, who writes:
[W]e are continuing to evaluate our operations and the best way to position our company for the long term. We have made hard decisions over the last six months, and we still have hard decisions to make. You have my word that I will bring you all together when we have final decisions and details to announce.
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Ongoing regulatory issues have become a major stumbling block for the company in recent years, along with a swift hit to sales. The company suffered a $1 billion loss last year — a steep drop after a rapid climb.
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