The company plans to cut between 10 and 15 per cent of its staff as part of a “necessary reset,” said CEO K.C. Crosthwaite. Juul, which is facing broad regulatory pressure, will also reduce its marketing budget and focus instead on “earning a license to operate in the U.S. and around the world,” said Crosthwaite. (Wall Street Journal)
Talking point: The U.S. Food and Drug Administration (FDA) is expected to enact regulations banning e-cigarette companies from selling certain flavoured products; they’ll also need to apply for FDA approval before selling their products in the U.S. Juul, the market leader, has tried getting ahead of the laws by pulling candy-, dessert- and fruit-flavoured “e-juice” and halting federal lobbying efforts against the FDA—a measure that could be hurting its growth in the short term. Health Canada is also reviewing its vaping regulations after a rise in vaping-related lung injuries in the U.S. So far, it’s business as usual for Juul in Canada, despite public health groups calling for an immediate ban on flavoured products, which accounted for about 80 per cent of the company’s sales this year.