As Juul tries to stabilize its besieged business in the wake of regulatory repression and multiple surveys in its products and marketing tactics, the company is bracing for more layoffs and may eventually pull out of some overseas markets.
The latest developments seem to indicate that things are still imploding at the vape giant. Til le journal Wall Street reported on Wednesday that Juul could pull out of 11 countries to focus its business on its markets in the UK, US and Canada. The company ad this week, it is considering cost-cutting measures as a way to reallocate resources to new products and research.
A Juul spokesman did not comment on the number of planned cuts, but told Gizmodo the layoffs have yet to take place. The company said it has “continued to carefully assess how we allocate our resources, so that we can implement our long-term approach and control our future in an ever-changing and insecure category.”
“The global pandemic and the ongoing economic crisis have thrown a level of uncertainty around the world for which we must prepare,” the company said on its website. “To better serve our mission, we need to prioritize how we use our resources to execute our focused, long-term approach. This will allow Juul Labs to continue to invest in science and evidence capabilities, access control technologies and future products in the key markets that make up the vast majority of our business. While these investments do not generate income in the short term, they will help us gain confidence and build a long term business to advance the harm reduction potential for adult smokers and combat underage use.
Juul has seen a dramatic drop from its heyday just a few years ago when it dominated the vaping product market largely as a result of a use of its products by adolescents. A number of regulatory repressions both in the United States and abroad saw Juul’s once immensely popular fruity flavors withdrawn from sale, as pod health officials said contributed to an epidemic nicotine consumption among young people. In response, Juul explored a number of measures to curb the sale and use of its products by minors, including with age limit verification tools.
The company said this week that its most recent measures were “the correct steps for the business to further secure its business and seize the historic opportunity that lies before us.”