Juul Avoids Bankruptcy with Plans to Cut Roughly 400 Jobs
Juul Labs Inc. is getting a financial lifeline from two longtime shareholders and is no longer preparing to file for bankruptcy, but plans to cut around 400 jobs as part of a reorganization, according to a person with knowledge of the situation.
Nick Pritzker, the Hyatt Hotels heir and founder of Tao Capital Partners LLC, and Riaz Valani, a partner at Global Asset Capital LLC, have agreed to inject cash into the troubled e-cigarette company, according to the person, who asked not to be identified because the matter is private. The job cuts are part of a plan to slash Juul’s operating budget by 30% to 40%, the person said.
“To further secure the company’s ability to continue moving forward, we are also undertaking a reorganization, including the difficult but necessary step of separating from many valued colleagues,” a Juul spokesperson said in a statement. “Looking ahead, Juul Labs remains committed to advancing its mission of harm reduction for adult smokers while combating underage use.”
Read the source article at au.finance.yahoo.com