Vaping company Juul announces layoffs amid lawsuits, government bans

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Embattled vaping company Juul Labs announced layoffs Thursday as the company tries to weather growing setbacks to its electronic cigarette business, including lawsuits, government bans and increasing competition.

Juul also said it has obtained new financing from several investors to stay in business, including an effort challenging plans by the Food and Drug Administration to ban its products.

The backlash against teen vaping triggered a series of government actions that have forced the company into retreat. Since 2019, Juul has dropped all U.S. advertising and discontinued most of its flavors. Altria pulled its own e-cigarettes off the market in 2018 after taking a nearly $13 billion stake in Juul. But that investment has lost more than 95% of its value as Juul's prospects have dimmed, giving Altria the option to exit its non-compete agreement.

 

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