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Juul plans to cut around 500 jobs by the end of the year



Juul Labs plans to cut around 500 jobs by the end of the year as part of a broader reorganization plan aimed at repairing the company's relationship with regulators. The e-cigarette giant will also cut its marketing budget and invest in ways to limit underage vaping.

The job cuts were first reported by the Wall Street Journal.

In a statement to CNBC, the company said the cuts were part of a broad review of the company's practices and guidelines by CEO KC Crosthwaite.

The cuts will make up about 10 to 15% of Juul's labor. The San Francisco-based company today employs about 4,1

00 people. Juul employed about 300 people a month as it grew from a small startup in 2015 to a company worth $ 38 billion late last year.

A spokesman for Juul said the cuts will happen across different departments and added that all employees will receive severance pay and their eligible eligibility bonuses.

"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." Crosthwaite said in a statement.

Juul suspended sales of all fruity flavors earlier this month, ahead of the Trump administration's expected removal of all flavored e-cigarettes from the market. Health and Humanitarian Secretary Alex Azar told CNBC that the stop would not deter the Trump administration's plans.

The Food and Drug Administration is currently looking at how to tackle tobacco flavors, and proposed a rule last year that has received more than 525,000 comments to date.

Mitch Zeller, director of the FDA's Center for Tobacco Products, said last week that the administration is "hard at work" with the taste ban.


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