Juul Labs secured financing from early investors, as it planned to lay off nearly a third of its staff in order to avoid filing for bankruptcy.
An investment of capital from some of our earliest investors has enabled Juul Labs to identify a path forward. The investment will allow Juul Labs to continue operations and support product innovation.
The investment has not been made public.
The reorganization of its global workforce will be necessary in order for it to move forward. About 400 people are going to be laid off and the operating budget is going to be slashed.
Juul has had financial problems in the past. In 2015, it introduced its popular e-cig, which it claimed was a safer alternative to smoking traditional cigarettes. The company has had a number of legal challenges since then. Many suits were deceptive and failed to warn about the risks of its products, which was one of the reasons why Juul settled several large cases brought by state authorities.
E-cigarettes were the most popular tobacco product among middle and high school students for the ninth year in a row, according to a new report. More than 3 million students used tobacco products this year. There are more than 2.5 million e-cigarettes.
The report said many factors contribute to youth tobacco product use.
The FDA placed a hold on Juul's order in July after ordering it to stop selling its products. Analysts predicted that the company might file for Chapter 11 protection as a way out of its financial troubles.
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