Vaping company Juul announces layoffs amid growing setbacks
Embattled vaping company Juul Labs is announcing layoffs as the company tries to navigate growing setbacks to its electronic cigarette business
WASHINGTON (AP) — Embattled vaping company Juul Labs announced layoffs Thursday as the company tries to weather growing setbacks to its electronic cigarette business, including lawsuits, government bans and increasing competition.
Juul also said it has obtained new financing from several investors to stay in business, including an effort challenging plans by the Food and Drug Administration to ban its products.
For weeks, industry analysts have speculated that Juul could soon declare bankruptcy or sell itself to another company. Thursday’s announcement appears to have put those plans on hold.
“This investment will allow Juul Labs to maintain business operations, continue advancing its administrative appeal of the FDA’s marketing denial order and support product innovation and science generation,” a company spokesperson wrote in an emailed statement. The company declined to provide further details on the scope of the layoffs or financing.
