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Juul plans to put off 30% of workforce in cost-cut push

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(Reuters) -Juul Labs is planning to put off 30% of its workforce, a supply acquainted with the matter informed Reuters on Wednesday, because the e-cigarettes maker goals to scale back its working prices.

The restructuring is aimed toward maximizing profitability and cash-flow era, the corporate stated in a press release, including that it might considerably scale back its headcount to ship on the corporate’s technique.

The e-cigarettes maker joins a number of corporations throughout company America which have trimmed their workforce this yr in a bid to rein in prices amid still-high inflation and rising rates of interest.

Juul would lay off about 250 folks, bringing its workforce all the way down to round 650, the supply stated.

The Wall Road Journal had first reported on the information earlier on Wednesday.

Final yr, the as soon as red-hot vaping firm had deliberate to put off about 400 folks and scale back its working finances by 30% to 40% as a part of a reorganization, staving off a doable chapter submitting.

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The contemporary spherical of job cuts would cut back working bills by $225 million, WSJ reported on Wednesday, citing an organization spokesperson.

Juul has additionally been beneath strain over the previous yr, because it has needed to take care of lawsuits associated to advertising and marketing of its e-cigarettes.

In April, the corporate had agreed to pay $462 million over eight years to settle claims by six U.S. states together with New York and California, together with the District of Columbia, that it unlawfully marketed its addictive merchandise to minors.

On Tuesday, Marlboro maker Altria Group (NYSE:) stated that its unit NJOY has filed a criticism towards Juul with the U.S. Worldwide Commerce Fee, looking for a ban on the import and sale of Juul merchandise.

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