Juul Labs just fired 650 workers — 16% of its global workforce — and plans to cut costs by $1 billion next year as the embattled e-cigarette maker faces growing regulatory scrutiny and federal investigations.
While many first learned about the layoffs from news reports, others were not surprised as morale at the company had been low for months, former employees said.
Business Insider spoke with six former Juul employees who described how the layoffs went down and how they thought the cuts reflected problems of unchecked explosive growth, lack of proper business processes, and mismanagement.
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Until this summer, Juul Labs was on such an aggressive hiring spree that new hires were often spilling into the kitchen of its San Francisco headquarters.
The e-cigarette company said it was adding an average of 300 employees a month, including upward of 30 new employees a week in some offices around the US, several former employees told Business Insider.
It had claimed nearly 75% of the US e-cigarette market and was valued at $38 billion last year after an investment from the tobacco giant Altria, which was bracing itself for a future in which adult smokers were increasingly seeking alternatives to cigarettes.
But this past week, many of its offices across the US emptied out as the company announced it was laying off 650 workers — 16% of the global workforce — and planning to cut costs by $1 billion next year, The Wall Street Journal reported November 12.
The layoffs are part of a broader reorganization at Juul, which has been forced to curtail expansion and shake up management in the face of regulatory scrutiny and federal investigations. Its valuation was recently slashed by more than a third. It’s been sued by New York and California over accusations it …read more
Source:: Business Insider