Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Juul to cut $1 billion in costs as new CEO aims for reboot

Published 11/12/2019, 08:52 AM
Updated 11/12/2019, 08:55 AM
Juul to cut $1 billion in costs as new CEO aims for reboot

Juul to cut $1 billion in costs as new CEO aims for reboot

(Reuters) - Juul Labs Inc will cut nearly $1 billion in costs next year, a company official said on Tuesday, as its new chief executive officer tries to turn around the e-cigarette maker following a regulatory crackdown.

K.C. Crosthwaite, a former executive at major shareholder Altria (N:MO), is tasked with fixing the company's battered public image and shrinking valuation as the regulatory moves on vaping threaten to upend the fast-growing industry.

The official also said Juul would cut around 650 jobs, or 16% of its 4,051 strong workforce, starting Tuesday. The company had previously said it would cut 10-15% of its workforce by the end of this year.

"As the vapor category undergoes a necessary reset, this reorganization will help JUUL Labs focus on reducing underage use, investing in scientific research, and creating new technologies," Crosthwaite said in a statement emailed to Reuters.

The cost cuts will impact Juul's marketing budget and are the latest effort by Crosthwaite, who last month reshuffled the San Francisco-based company's top management.

In October, Marlboro cigarettes maker Altria, which has a 35% stake in Juul, wrote down the value of its investment by $4.5 billion, cutting Juul's valuation by a third to roughly $24 billion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.