Juul to cut 16% of workforce
The beleaguered e-cigarette company, Juul Labs, is restructuring its operations -- cutting 650 jobs. That's 16% of its workforce.
And it'll slash spending by nearly $1 billion this year. Those cost cuts will include marketing. It's the latest effort by its new CEO to try to turn the startup around following a regulatory crackdown.
Juul has been sharply criticized for making vaping popular among teenagers. Studies show its e-cigarettes are by far the most popular of any brand used by middle and high school students.
Just last week, the company stopped selling its mint-flavored nicotine cartridges in the U.S. amid signs that that flavor is popular among the young. The moves come as the Trump administration considers banning all e-cigarette flavors except tobacco.
Juul's valuation is also shrinking. Altria, which bought a 35% stake in Juul last year, wrote down the value of its investment by about a third last month.
