E-cigarette giant Juul will lay off 30% of its employees!

According to Bloomberg, Juul plans to lay off one-third of its employees, or even 40%, due to factors such as strict e-cigarette regulations and declining market share in the United States. The final decision will be made in the next few weeks.

A person familiar with the matter revealed that the layoffs are part of Juul Labs' large-scale restructuring plan, and about 800 to 950 people will be affected. The person pointed out that the layoffs are not related to the new coronavirus pandemic.

The Wall Street Journal report pointed out that Juul said in a statement: "The layoffs are part of an ongoing restructuring plan as we continue to evaluate our operations and the best way to position the company for the long term."

It is understood that Juul is scaling back since the company was hit by strict e-cigarette regulation and plummeting sales in the United States. The company stopped selling its sweet flavors, including mint and mango, last year. Public health organizations and regulators accuse Juul of fueling the e-cigarette crisis among teenagers. But the company said it has never targeted minors in its marketing or promotional activities.

This is Juul’s second layoff plan in half a year.

Last November, Juul's CEO KC Crosthwaite said that as part of its adjustment plan, Juul would lay off about 650 employees, accounting for 16% of its then-employee employees, and the layoffs would save about $1 billion.

Juul e-cigarette sales have fallen about 10% over the past year, according to market research firm IRI, but the company still holds 60% of the e-cigarette market.