JUUL Labs is cutting its workforce by more than half, the Wall Street Journal announced last week. The company also said it may stop selling its products in Europe and Asia where markets don’t justify such a strong investment, and instead focus on its core markets in the United States, Canada and the United Kingdom. Earlier this year, JUUL halted sales of its vapes in South Korea due to failure to gain much interest in the product there.
JUUL Labs had grown to 4,100 employees strong by 2019, but the San Francisco-based company began cutting several hundred jobs beginning in November due to increased regulatory scrutiny, public backlash over the teen vaping crisis, and mounting lawsuits that have led to lagging sales. There are currently about 2,200 employees, and JUUL is looking to lay off about 1,000 of them, WSJ sources say.
“No final decisions have been made and we will continue to go through our evaluation,” a JUUL spokesperson said.
The company is accused of targeting youth with sweet-flavored e-liquids and making its nicotine smoother and more palatable. JUUL also designed its vape devices to be small enough to hide in plain sight and then hired social media influencers who were popular with teens to promote their products. As a result, JUUL is being blamed for creating a new generation of nicotine addicts and spurring a youth vaping epidemic.
Beasley Allen lawyers Joseph VanZandt and Sydney Everett, together with Mass Torts Section Head Andy Birchfield, are currently representing several individuals who are suing the top U.S. vape maker JUUL for the negative impact its products have had on their lives. They also have filed lawsuits on behalf of school districts nationwide, which seek to protect students and recover resources spent fighting the vaping epidemic.