Briefing

Juul is laying off 650 staff and cutting spending by US$1 billion

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The San Francisco-based e-cigarette company will lay off 150 more employees than previously announced as it faces regulatory pressure in the U.S. The company will lose about 16 per cent of its workforce with the cuts, which are intended to “right-size” the business after a pace of adding about 300 staff per month. Juul told The Logic the cuts will focus on the marketing team, which has already suspended broadcast, print and digital advertising in the U.S. (The Mercury News, The Logic)

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Talking point: The cuts follow a US$14-billion decrease in Juul’s valuation after Altria, its biggest shareholder, wrote down its US$12.8-billion investment by US$4.5 billion. Last month, Juul stopped selling most of its flavoured products in the U.S.—which account for about 80 per cent of its sales in the country—in anticipation of legislation to ban the products, which are known to be attractive to young people and non-smokers. Lisa Hutniak, Juul’s head of communications in Canada, declined to answer The Logic’s questions about whether the cuts will affect the company’s business in Canada, where there have been proportionately fewer cases of vaping-related illnesses than in the U.S., and where lawmakers are taking a less urgent approach to regulation.