Us water pipes online company JUULLBUSIC will cut its workforce by a third, pull out of several countries and redeploy its headquarters on May 6 in an effort to put the e-cigarette giant on a sustainable path, Bloomberg reported.
The company's chief executive, k.c.rosthwaite, explained in a virtual meeting with employees on Tuesday that falling sales and a regulatory strike had forced the company to rethink its strategy.
At the end of the meeting, Mr. Croswit said in an email to employees around the world who could ask questions about their slack that 900 job cuts would help the company stay in line with where we are today.Juul will cut almost 40 per cent of its workforce in a year, on top of 650 jobs cut at the end of last year.It is a dramatic turnaround for a company that used to hire 300 people a month.
It will also stop expanding in South Korea and consider exiting Austria, Belgium, France, Portugal and Spain.
'you may think you're exiting the international market, but you're not,' says Mr. Crosthwaite.Rather, it's about building a company that will succeed in the long run.We're not going to expand just for the sake of expanding.
Over the past year, yoel's valuation has fallen sharply.
It wasn't until last summer that the company seahorse lookah coils expanded rapidly and spent more to buy an expensive office building in San Francisco.Sales rose 516 per cent between 2017 and 2018, according to a recent financial disclosure by Bloomberg.In 2019, revenue exceeded $2 billion.But administrative costs nearly tripled to $1 from the same period last year, according to the document.With $3 billion, the company took a $69 million restructuring and other costs and a net loss of $1 billion.
Last year, as concerns grew about Juul's popularity among young people, federal investigators targeted the company and its ties to tobacco giant altrig tobacco inc., which owns 35% of the company.
Last month, antitrust regulators filed a lawsuit to cancel the deal.He also faces a series of product-liability lawsuits, as well as a series of lawsuits from state attorneys general and school districts.
The company denies selling to minors.
He will also move his headquarters from San Francisco to Washington, dc, in an effort to re-establish relations with regulators.
"Taking these steps will put the yule laboratory on a sustainable path and ultimately enable us to invest and grow for the future," said crosthwaite.
However, Mr. Crosswit said in an email that Mr. Uhl would not leave San Francisco and would instead try to sell the office building.
Employees in the United States and Canada can leave voluntarily.
In the United States, anyone who takes time off from work takes political leave, meaning they will receive wages and benefits until at least July 24, according to another email from BloombergNews.They will receive health insurance lookah glass for sale subsidies by the end of the year and the last corresponding retention bonus when they invest in Altria in 2018.
According to Crosthwaite's email, Juul will notify those laid off in the United States and Canada within a week from May 18 to meet its goal of cutting 900 jobs.
According to people familiar with the matter, one employee asked executives if they would take a pay cut.
Crosthwaite said he would hold all executives accountable, but gave no details.Crosthwaite has drastically reduced its senior management team since joining in September.
A spokesman for Mr. Uhl declined to comment.
While Juul still has a 60 per cent share of the e-cigarette market, its sales have fallen about 10 per cent in the past year, according to iri, a market research firm.It also faces another hurdle: the fda requires Juul and its competitors to apply for authorization to continue selling its products through Sept. 9.