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Juul to withdraw from the Philippines and 10 other countries
Agence France-Presse (Agence France-Presse) – September 3, 2020 – 16:07
New York, USA – Beleaguered e-cigarette maker Juul plans to pull out of Europe and Asia and lay off more workers after already losing a third of its workforce, the Wall Street Journal said Wednesday.
The startup could end sales in 11 countries, including Italy, Germany, Russia, Indonesia and the Philippines, the newspaper said, noting that the United States, Canada and Britain accounted for 90% of its sales in the first quarter. .
This is expected to be accompanied by layoffs, but precise figures have not yet been announced. Juul did not respond to an AFP request for comment Wednesday night.
The job cuts would allow the company to invest in new product development, according to an email sent to staff by Kevin Crosthwaite, the company’s chief executive. “While those investments will not provide short-term income, they will help us gain trust and build a company for the long term,” said Crosthwaite, who took over the company a year ago.
Juul was accused of illegally selling its products to underage consumers and targeting high school children, sparking a spate of lawsuits.
Since then, Juul has essentially stopped advertising or selling sweet or fruit-flavored products in the US and has pulled out of various foreign markets such as South Korea, Austria, Belgium, Portugal, and Spain, as sales have dropped. collapsed.
In countries like Indonesia and the Philippines, Juul faced tough times due to government efforts to heavily tax vapor products, widely viewed as a dangerous alternative to cigarettes.
The company laid off nearly a third of its 3,000 workers earlier this year and now has a workforce of about 2,200, the Journal said.
Also, in April, the Federal Trade Commission decided to block a large investment by competitor Altria, owner of the Marlboro brand, in Juul. Altria had spent $ 12.8 billion for a 35% stake in Juul in December 2018, valuing the startup at $ 38 billion. Altria now values the company at $ 12 billion. – with Philstar.com
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