Juul will cut roughly 500 jobs between now and the end of the year, The Wall Street Journal first reported Monday. The cuts come as the e-cigarette company prepares for a proposed nation-wide ban on flavored pods, which comprise over 80% of its US sales. The e-cigarette giant is also cutting all ads across the US. Its Chief Marketing Officer, Craig Brommers, has departed and will not be replaced.
Makes sense; they hardly need a CMO if they're cutting all their ads. It also explains why they've been absent from the airwaves of late. Originally marketed as a smoking cessation aid, it seemed a bit odd that 80% of their sales were derived from flavored cartridges. Evidently, they're doing an about-face now. It's a step in the right direction.
And while the impetus underlying the turmoil may have positive attributes, it's important to understand a few points that are often overlooked: the bans on vaping products originated at the state level. And there's a reason for that - Oregon, for example, makes a lot of money on cigarette taxes, but nothing on vaping products. It's therefore in the best interest of the state to drive users away from vaping and back to cigarettes. And that's why they took action.
