Juul Labs plans to lay off roughly 30% of its workforce, whittling its operations as it seeks to raise capital or sell the company, the Wall Street Journal reported. The e-cigarette maker has been on tenuous financial footing since U.S. regulators last year ordered its vaping products off the market, then suspended the ban pending the company’s appeal. Juul staved off bankruptcy last fall after some early investors bailed it out. Since then, Juul has sought and failed to make a deal with a larger company on a sale, investment or licensing arrangement that could provide capital to continue its operations. Juul is awaiting a final decision from the Food and Drug Administration on whether its current products can remain on the U.S. market. The dispute hinges on unresolved technical questions in Juul’s application for federal authorization. Last month, in a separate application, Juul submitted its next-generation vaporizer for U.S. clearance. Juul hasn’t been able to strike a deal at what it deems a fair valuation without FDA authorization for one of its devices, a company spokesman said. Potential investors also have expressed concerns about the proliferation of illegal disposable vaping products, which have taken market share in the U.S. from Juul and others.
