SPONSORED:

Juul to shrink workforce by more than half

Juul to shrink workforce by more than half
© Getty Images

Juul says it is reducing its workforce significantly because of the coronavirus pandemic.

The vape producer announced Thursday that it will be making a “significant global reduction in force” amid the economic fallout from the global health crisis.

According to The Wall Street Journal, those cuts are expected to amount to more than half of the company's workforce. 

ADVERTISEMENT

“The global pandemic and ongoing economic crisis have thrown in a level of uncertainty around the world for which we need to prepare,” the company said in their announcement.

The decision could mean they have to pull out of as many as 11 countries and shrink the startup’s footprint to just the U.S., Canada and the United Kingdom. 

“As such, we will be making a significant global reduction in force, and we will be exploring the possibility of exiting a variety of markets in [Asia and the Middle East] that have not provided the kind of return necessary given the cost to continue investing in the market,” the announcement read. 

“In any potential new market, we would ensure that we can have science and evidence-based conversations with stakeholders before entering and that vapor products can effectively compete with combustible cigarettes," the company said.

Juul's products have come under scrutiny for their health risks and their marketing to young people.

The House passed a bill in February banning flavored e-cigarettes and tobacco products, like the ones Juul produces. The Food and Drug Administration (FDA) began enforcing a limited ban earlier this year on flavored-pod products with exemptions for menthol and tobacco flavors.