16% Of Workforce To Be Cut By Juul, Reduce Costs By $1 Billion By Next Year

The vaping company Juul announced on Tuesday that it will cut more jobs that it had earlier announced – 650 jobs instead of the previously announced 500, in its efforts to reduce its expenditure by almost $1 billion by next year, said a company official.

The number of jobs to planned to be cut accounts for 16 per cent of the total workforce of 4051 of the company. The company had been employing people at a very fast rate – almost 300 employees on an average a every month.

Back in September this year, the company had announced that it would be stopping advertisements for all of its products in the United State and the company now expects to significantly reduce its marketing expenditure as a part of that measure. The Juul official said Tuesday that the focus of sale enhancement of the team remaining with the company will be completely on direct advertising to smokers.

“As the vapor category undergoes a necessary reset, this reorganization will help Juul Labs focus on reducing underage use, investing in scientific research, and creating new technologies while earning a license to operate in the U.S. and around the world,” Juul’s new CEO K.C. Crosthwaite said.

All of these measures are being adopted and implemented by Juul is in response to its efforts to revamp its image from being accused as being responsible for a teen vaping epidemic in the US. Its former CEO Kevin Burns was replaced by the longtime tobacco executive Crosthwaite in September this year.

Crosthwaite was an employee of the tobacco company Altria that had late last year bought a 35 per cent stake in Juul. Crosthwaite has drawn up a strategy of ringing changes in the management and implementing job cuts since he took over.

Juul is being attempted to be positioned as a responsible company under his leadership. The company made a major announcement last week when it said that it would no longer sell its mint-flavored nicotine pods which have been identified to be the most popular among high school students in two studies conducted over the vaping epidemic in the US.

The website of the company also no longer exhibits its other sweet flavors while the company had pulled those flavors from convenience stores, vape shops and other retailers about a year ago.

In September, the Trump administration had said that a mechanism for putting a ban on flavored e-cigarettes was being prepared by it. Applications to the to the Food and Drug Administration by May 2020 have to be submitted by Juul and all other e-cigarette companies if the companies want to keep their products on the market.

(Adapted from CNBC.com)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s