Vaping giant Juul Labs just announced a second restructuring effort on Tuesday. The San Francisco based e-cigarette company is eliminating around 650 jobs and freezing hiring.
The $1 billion cost-cutting plan comes in the face of heightened scrutiny surrounding vaping.
Several states are moving to ban e-cigarettes altogether. Top retailers like Walmart have announced they would no longer sell vaping products.
Vaping lung injuries have topped 2,000 cases, according to the Centers for Disease Control and Prevention.
Most of the illnesses involve vaping substances that include THC – the psychoactive chemical found in marijuana.
Juul said it will concentrate its advertising strategy on direct-marketing efforts, and maintain its current policy of not advertising on TV, in print or online. The moves are part of Juul’s efforts to get in better favor with federal regulators in advance of the company submitting its products for review by the U.S. Food and Drug Administration next May.
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