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Juul is laying off 650 people in a $1 billion cost-cutting plan

Juul on Tuesday announced an update to its majo...

Posted: Nov 12, 2019 8:46 AM
Updated: Nov 12, 2019 9:00 AM

Juul on Tuesday announced an update to its major restructuring effort that includes layoffs and deep cost cutting. It's the latest development in a series of shakeups since September as Juul attempts to revamp its strategy in the face of heightened scrutiny of vaping.

Much of the $1 billion in cuts Juul hopes to make will hit the company's marketing department. Juul has agreed to pause its marketing effort as regulators claim the company was trying to push its products on teens.

Juul said it would cut 650 jobs and phase out the position of chief marketing officer. In October, it said it would cut about 500 jobs. The 650 job cuts represent about 16% of Juul's global workforce.

At its peak earlier this year, Juul was hiring an average of 300 people per month. Juul said the layoffs are part of its effort to 'right-size the business.' The slimmed down strategy is part of Juul's broader efforts to regain public trust.

The company's future advertising efforts will focus on direct marketing. It's still enforcing its strategy of not advertising on TV, in print or online.

Juul said it will continue to invest in its product team as the company explores 'new technologies to combat underage use,' it said in a statement. Juul, for example is developing a Bluetooth-connected smoking device.

'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 US and around the world,' Juul CEO KC Crosthwaite said.

Crosthwaite issued that same statement last month when he announced the departure of four executives, including the chief marketing officer, chief financial officer, senior vice president of advanced technologies and chief administrative officer.

Altria, which invested $12.8 billion for a 35% stake in Juul in 2018, hasn't seen its returns flourish. The Marlboro-owner recently announced it was taking a $4.5 billion writedown on its investment in Juul.

Juul's value deteriorated as concerns mounted about the health risks of vaping and US regulators pushed for a crackdown on e-cigarettes. Juul was also criticized for selling pods with flavors like mango, creme and cucumber that became popular with teens. It stopped selling its popular mint pods last week.

Tuesday's shakeup is the latest of changes instituted by Crosthwaite since being named as CEO in late September. He was previously the chief growth officer at tobacco company Altria. In October, he gave Joe Murillo, another former Altria executive and Juul's chief regulatory officer, more power. The company's government affairs, corporate responsibility and scientific affairs executives all now report to him.

Several states are moving to ban e-cigarettes altogether and top retailers, like Walmart, have announced they would no longer sell vaping products. Vaping lung injuries have topped 2,000, according to the Centers for Disease Control.

Juul is bracing for a decision from the US Food and Drug Administration on a final rule that would remove some flavored nicotine vaping products from the US market. It has refrained from lobbying the administration on its draft flavor guidance.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 309223

Reported Deaths: 7153
CountyCasesDeaths
DeSoto21005250
Hinds19989411
Harrison17590303
Rankin13388277
Jackson13169243
Madison9965212
Lee9900170
Jones8319161
Forrest7554149
Lauderdale7232237
Lowndes6306144
Lamar614685
Lafayette6081118
Washington5296133
Bolivar4778130
Oktibbeha458097
Panola4461103
Pearl River4447142
Warren4310119
Marshall4302103
Pontotoc417672
Monroe4063132
Union405175
Neshoba4009176
Lincoln3892109
Hancock373785
Leflore3471124
Sunflower332090
Tate325984
Pike3226105
Scott311973
Yazoo305369
Alcorn301566
Itawamba297977
Copiah294365
Coahoma290779
Simpson290486
Tippah285368
Prentiss276659
Marion266479
Leake262473
Wayne261541
Grenada257385
Covington255380
Adams247082
Newton246161
George238947
Winston226181
Tishomingo222867
Jasper220248
Attala213673
Chickasaw205857
Holmes187272
Clay183354
Stone179733
Clarke178177
Tallahatchie176240
Calhoun165632
Yalobusha160236
Smith159734
Walthall131143
Greene129633
Lawrence126823
Noxubee126634
Montgomery125842
Perry125238
Amite121041
Carroll121026
Webster113932
Jefferson Davis105932
Tunica103425
Claiborne101430
Benton97525
Kemper95728
Humphreys94732
Franklin83123
Quitman78916
Choctaw74417
Wilkinson65329
Jefferson64928
Sharkey49817
Issaquena1686
Unassigned00

Alabama Coronavirus Cases

Cases: 522512

Reported Deaths: 10790
CountyCasesDeaths
Jefferson755371494
Mobile39129799
Madison34124500
Tuscaloosa25408444
Montgomery24059573
Shelby23225242
Baldwin20730302
Lee15638166
Calhoun14358311
Morgan14171273
Etowah13705348
Marshall12012220
Houston10416279
Elmore10024203
Limestone9862148
Cullman9509191
St. Clair9486236
Lauderdale9280233
DeKalb8762183
Talladega8127173
Walker7151276
Autauga6763106
Jackson6762110
Blount6532133
Colbert6236132
Coffee5436113
Dale4781111
Russell431239
Franklin421382
Chilton4130110
Covington4069115
Tallapoosa3922148
Escambia390374
Dallas3528150
Chambers3519122
Clarke347360
Marion3076100
Pike306676
Lawrence296395
Winston273272
Bibb256761
Marengo248561
Geneva246475
Pickens233259
Barbour227155
Hale218675
Butler213268
Fayette209660
Henry188444
Cherokee182744
Randolph177841
Monroe173140
Washington165538
Macon156548
Clay150255
Crenshaw149557
Cleburne147041
Lamar140034
Lowndes137353
Wilcox124727
Bullock122040
Conecuh109728
Perry107726
Sumter103332
Coosa99428
Greene91434
Choctaw58824
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A strong cold front will pass through our area this evening. This will bring some very unseasonably cold air into our area for a few days. We will see some potential for some frosty conditions for tonight and for our Wednesday night.
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