E-cigarette maker Juul Labs Inc. is planning another major round of layoffs and is considering ceasing sales in Europe and Asia. This could mean pulling back up to 11 countries and reducing the startup's presence to its core US, Canada and UK markets.
Juul cut about a third of its 3,000 employees earlier this year and has already stopped selling its vaporizers in several countries. The once rapidly growing company has scaled back its operations to counter a sharp drop in sales. It currently has around 2,200 employees.
Juul has been blamed by parents and government officials for a surge in teen vaping in the United States over the past two years. Now sales are falling as Reynolds American Inc.'s Vuse e-cigarette brand gains market share and some vapers switch back to traditional cigarettes.
Juul Chief Executive K.C. Crosthwaite emailed employees on Wednesday that the businesses it investigated are not generating enough revenue to support further spending there. He said the cuts would allow the company to invest in new product development, technologies to curb youth use, and scientific research that could help the company show regulators that its products are less harmful than cigarettes. Juul has presented a new version of its vaporizer to the Food and Drug Administration which, according to people familiar with the matter, will only be unlocked for users who are at least 21 years old.
An expanded version of this report is posted on WSJ.com.
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