E-cigarette maker Juul to cut staff by half, exit more markets: source

[NEW YORK] E-cigarette giant Juul Labs could cut more than half its workforce, according to a person familiar with the company's plans, while it weighs exiting more European and Asian markets, further signs of the once high-flying company's deteriorating fortunes.

Juul aims to reduce its workforce to about 1,000 employees, down from the current 2,200, the person said.

A Juul spokesperson said no final decisions have been made and that the company will continue to evaluate its options.

The company announced plans to lay off more employees in a message to employees from chief executive officer KC Crosthwaite on Wednesday.

The email, seen by Bloomberg News, said Juul is still in the exploratory phase and didn't detail how many employees will be cut or how many countries it may exit.

Juul has already cut its workforce by about 40 per cent and halted global expansion.

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The Wall Street Journal first reported news of the changes.

A health crisis surrounding vaping that was later linked to faulty cannabis products sent the already embattled Juul into a tailspin last year. US regulators blamed an epidemic of teen vaping on the company.

Juul has since tried reorienting itself, shuffling its executive ranks, eliminating sweeter flavours that critics said targeted younger customers, and focusing on a crucial regulatory review that will determine whether its products can stay in the US market.

Mr Crosthwaite said in his email that Juul will exit markets that don't generate sufficient returns and will meet with "key stakeholders" before entering a country in the future.

The company has been pursuing that approach in Japan, where it hired a former pharmaceutical executive to lead its efforts.

The company will use its resources to develop new technologies and focus on its core markets, Mr Crosthwaite said. In July, Juul filed an application to keep selling its e-cigarettes with the US Food and Drug Administration, which is now being reviewed.

BLOOMBERG