U.S. e-cigarette company Juul to cancel overseas expansion plans, lay off CEO, says company is ‘fighting for survival. Juul Labs, an American e-cigarette company, told employees that in the case of a battle for survival, the company will cancel overseas expansion plans and have refinanced some of its debt.
U.S. e-cigarette company Juul to cancel
According to a copy of the speech, Juul CEO KC. “The board, the leadership team and I are continuing to evaluate all options to ensure we take all necessary steps to fight for our survival, which has been going on for many years,” Crosthwaite said at an all-hands meeting on Thursday.
Juul has been preparing for a possible bankruptcy filing amid a dispute with the U.S. Food and Drug Administration (FDA) over whether its e-cigarettes will remain available in the U.S. Crosthwaite said the company is evaluating various restructuring options, including filing for bankruptcy, but has not yet made a decision. Crosthwaite said the company would cut some jobs after scaling back overseas expansion plans. He said Juul had refinanced its mortgage debt, giving it more time to explore longer-term options.
Juul, which had about 3,000 employees in 2019, has cut about two-thirds of its workforce in recent years as it faces falling sales and widening losses. The company currently employs about 1,200 people, including about 100 outside the U.S., and it is not known how many jobs will be affected by the latest layoffs.