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Home / Business / Juul names new CFO amid shaking of management, several top executives are out

Juul names new CFO amid shaking of management, several top executives are out



A person in the audience wears a shirt against JUUL as JUUL Lab's co-founder and Chief Product Officer James Monsees, in the foreground, testifies before a House Monitoring and Government Reform Subcommittee on Capitol Hill, Washington, Thursday, July 25, 2019, during a hearing on youth's nicotine epidemic.

Susan Walsh | AP

Juul CEO K.C. Crosthwaite replaced the chief financial officer in the midst of a management push at the packaged e-cigarette company, according to people familiar with the matter.

Several top executives have left the company, including CEO Ashley Gould and CFO Tim Danaher, two veteran employees at the young startup. Newcomers Craig Brommers, marketing manager and David Foster, senior vice president of advanced technologies, are also gone.

"We would not be where we are as a company today without the extraordinary efforts of a few individuals who have asked to transition out of the company. I want to be sure to thank each and every one of them," said Crosthwaite, a former manager of Altria, in an email sent to staff Monday.

Juul appointed Guy Cartwright as its new Chief Financial Officer, a Juul spokesman confirmed to CNBC. Cartwright joined Juul in July as CEO of Transformation and Operations, according to his LinkedIn profile.

"For the past three months, Guy has been helping us define our financial priorities and identify opportunities for efficiency," a company spokesman said. said it in a statement.

Juul has eliminated the chief marketing officer, according to the spokesman. It was not immediately clear if Juul would fill Gould and Foster's positions. Co-founders James Monsees and Adam Bowen, who previously held the positions of chief product manager and chief technology officer, will join a newly formed founding office, where they will advise Crosthwaite.

The changes were announced in the email sent to employees. They come while Juul is preparing to cut around 500 jobs, or around 1

0% to 15% of the total number of employees, by the end of the year. Before the cuts, Juul boasted about 1,100 employees.

"As the steam 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 United States and around the world," said Crosthwaite in a separate statement that addressed the layoffs Monday.

The shaking comes just a month into KC Crosthwaite's term of office. The longtime Altria manager replaced former Juul CEO Kevin Burns, who steered the company through its deal with Altria. The tobacco giant invested $ 12.8 billion in Juul in December.

The deal sent Juul's valuation soaring to $ 38 billion. It drew intense criticism from public health advocates who said to take money from the United States. & # 39; top cigarette manufacturer undermines Juul's stated mission to help eliminate smoking.

The situation has quickly deteriorated for Juul in the almost year since the announcement of the deal. At least one hedge fund has reportedly reduced the value of its stake in Juul to a price that values ​​the e-cigarette manufacturer at $ 24 billion.

The Trump administration has said it will remove all flavored e-cigarettes from the market amid the wave of teenage use. Local and state authorities tighten the restrictions, and in some cases e-cigarettes outright ban. Retailers such as Walmart, Walgreens and Kroger pick up the products from the shelves.

Juul faces mounting disputes. The company is undergoing numerous investigations, including one from a house panel as a rep. Raja Krishnamoorthi leader. The committee grilled Gould, one of the leaders who were removed, about Juul's youth outreach program that sent the company's representatives into schools.

Crosthwaite's job is to reverse Juul's fortunes. Under his leadership, the company has suspended all product advertising in the United States and stopped selling Juul's sweet flavors like mangoes and fruits. Juul has also said it will not lobby the Trump administration for its threatening taste policy.

Crosthwaite lured former Altria colleague to lead Juul's regulatory efforts. Murillo will focus on preparing and submitting Juul's application to the Food and Drug Administration to continue selling the e-cigarettes. All companies must submit their products to the FDA for review by May 2020.


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