Company News

September 3, 2020

A year ago, Juul Labs made a commitment to reset the vapor category and position the company for long-term success. Throughout this time, Juul Labs has made significant decisions to place the company on a pathway to fulfill its mission by earning trust of key stakeholders while combating underage use. These decisions, though difficult, have been necessary to further secure our business for the long term and to ultimately end the era of the combustible cigarette. Today, the company announced additional steps toward that goal.

Throughout this year and against a difficult external environment, we have continued to carefully evaluate how we allocate our resources, so we can execute on our long-term approach and control our future in an evolving category lacking in trust. Our category has endured even tougher conditions and it has seemingly become even easier to sell combustible cigarettes than vapor products. The global pandemic and ongoing economic crisis have thrown in a level of uncertainty around the world for which we need to prepare.

To better serve our mission, we must prioritize how we use our resources to execute on our long-term, focused approach. This will allow Juul Labs to continue to invest in science and evidence capabilities, access control technologies and future products in core markets that make up a vast majority of our business. While those investments will not provide short-term revenue, they will help us earn trust and build a company for the long term to advance the potential for harm reduction for adult smokers and combat underage usage. Additionally, and under the right conditions, this provides the option to expand into potential new markets.

As such, we will be making a significant global reduction in force, and we will be exploring the possibility of exiting a variety of markets in EMEA and APAC that have not provided the kind of return necessary given the cost to continue investing in the market. In any potential new market, we would ensure that we can have science and evidence-based conversations with stakeholders before entering and that vapor products can effectively compete with combustible cigarettes.

None of these decisions are ever taken lightly, but they are the correct steps for the company to further secure the business and realize the historic opportunity before us.