Juul plans to lay off 500 employees and CFO and CMO depart in executive reshuffle as company prepares for possible federal ban on its flavored vape pods
- Juul Labs announced a reshuffle of its top executives on Tuesday
- CFO Tim Danaher and CMO Craig Brommers are departing the company
- Company is also reportedly planning to lay off as many as 500 employees
- Juul has already suspended advertising, and sale of fruity flavor vape pod
- New CEO acknowledges the vaping industry is undergoing a ‘necessary reset’
- The company has drawn criticism for its alleged popularity with teenagers
Juul’s new CEO K.C. Crosthwaite (above) is instituting a corporate reshuffle
Two top executives are out at Juul Labs, as the e-cigarette company says it plans layoffs ahead of a possible ban on flavored products that had made up the majority of its sales.
The departures of Chief Financial Officer Tim Danaher and Chief Marketing Officer Craig Brommers on Tuesday come just weeks after Juul suspended advertising, and halted sales of its mango, creme, fruit, and cucumber pods, pending FDA review.
The company will also cut 10 percent to 15 percent of its workforce by the end of the year as part of a broad reorganization under new CEO K.C. Crosthwaite, a former executive at major shareholder Altria.
‘As the vapor category undergoes a necessary reset, this reorganization will help JUUL Labs focus on reducing underage use, investing in scientific research, and creating new technologies while earning a license to operate in the U.S. and around the world,’ Croswaite said in a statement to DailyMail.com on Tuesday.
Juul has suspended sales of fruity flavors pending FDA review, but continues to sell tobacco and menthol flavors that it markets as smoking cessation aids
Juul, by far the most popular e-cigarette maker in the United States, has been rocked by concerns over the strong appeal of its nicotine products among teenagers.
The company’s colorful advertisements have been slammed by regulators, lawmakers and state attorneys general over their part in the sky-rocketing use of e-cigarettes among teenagers.
Danaher, who has been CFO for five years, will be replaced by insider Guy Cartwright, while the role of marketing chief will be terminated, a company spokesman said.
Chief Administrative Officer Ashley Gould and product development executive David Foster are also leaving, he added.
Juul Chief Financial Officer Tim Danaher and Chief Marketing Officer Craig Brommers departed the company on Tuesday as part of the shake-up
Crosthwaite replaced Kevin Burns last month, taking the top job as merger talks between Altria and Philip Morris collapsed.
The U.S. Food and Drug Administration in September warned Juul that it was misleading consumers by marketing its USB resembling e-cigarettes as safer than cigarettes, and requested additional information on its nicotine blend.
Soon after, the Trump administration announced plans to ban all flavored e-cigarette products, citing the alarming growth in teenage use.
Crosthwaite has said Juul will refrain from lobbying the Trump administration on the proposed flavor ban.
Juul said in a statement that all employees who are impacted by layoffs will receive severance, and their prorated eligible bonuses.