Even after several warnings from public health experts, e-cigarette firm Juul had been on a hiring spree over the last year. It hired an average of 300 employees per month in 2019 and grew to nearly 4,000 employees total. Now as part of a 'necessary reset' it plans to cut 500 jobs by the end of the year, as per a latest report. Juul has however not confirmed the number yet. 

Recently about 1,604 cases of mysterious vaping-related illnesses have been reported and have even led to 34 deaths over the last few months. While the exact cause of the illnesses is unknown, officials say THC vape products from the black market may be the culprit. This has raised a lot of concern in the U.S  and e-cigarette makers have been struggling to maintain their image amidst this situation. 

Reportedly, some states are passing measures outlawing the sale of e-cigarettes and the Trump administration is considering a federal ban on flavored ones. Currently, the e-cigarette market isn’t federally regulated. However, with the recent turn of events the FDA is conducting a review of vaping products and planning to put guard rails on Juul and other e-cigarette makers and sellers. 

Meanwhile firms like Juul are also looking for ways to reduce underage use. This would involve investing in scientific research, and creating new technologies. 

"As the vapor category undergoes a necessary reset, this reorganization will help Juul Labs focus on reducing underage use, investing in scientific research, and creating new technologies while earning a license to operate in the U.S. and around the world,” said CEO K.C. Crosthwaite. 

Image source:/Oliver Pohlmann

With the increased cases of illnesses e-cigarette market has gained a lot of attention and put major sellers like Juul Labs, Fontem Ventures, Japan Tobacco International USA, and Reynolds American in a difficult position. These firms who were looking to move towards growth and expanding their markets would now have to hold and reflect on their current product. In this situation the roles in R&D department might be the highest in demand. But getting the right talent might be challenging with the workforce being reluctant to join a sector under scrutiny.